A cryptocurrency analyst's long-term technical analysis of Dogecoin's price highlights a recurring historical pattern since 2021. The analyst stated that if Dogecoin's price movement can fully reflect this trend, it could trigger a rebound that breaks Dogecoin's price above $10.
Dogecoin's price follows repeating market cycles.
Dima Potts, a cryptocurrency technical analyst on X (formerly Twitter), recently shared an in-depth analysis of Dogecoin (DOGE) current and historical price trends, pointing out that Dogecoin may soon experience a significant surge. Potts particularly emphasized Dogecoin's weekly chart, showing that the price movement of this meme coin is within an upward channel.
The chart reveals a repeating cyclical pattern: every few years, Dogecoin undergoes similar cycles. Each cycle starts with a circular accumulation phase (marked in red and green curves in the chart), followed by a significant breakout that drives the price up substantially. After each parabolic rise, Dogecoin experiences a correction and enters a new accumulation phase in preparation for the next breakout.
The white line in the chart represents Dogecoin's long-term rising channel since 2014. Historically, Dogecoin has repeatedly bounced off the lower boundary (white trend line), triggering significant price increases, eventually reaching the upper boundary. Notably, during bull market cycles, Dogecoin hits the lower boundary every four years, then initiates a new round of increases.
Potts' analysis indicates that Dogecoin's current price movement closely aligns with historical patterns, possibly signaling the start of a new upward cycle.
In 2017, Dogecoin hit the downward trend line, triggering a price increase to $0.01 in 2018. A similar trend appeared during the 2021 bull market, when Dogecoin reached the downward trend line and soared to its all-time high (ATH) that same year.
Fast forward to the current bull market cycle. Potts believes that Dogecoin's current price trend indicates it is once again at a lower trend line. If historical trends repeat, this cryptocurrency is expected to begin an upward reversal soon, entering the second phase of a parabolic rise.
DOGE is expected to reach $10.
Potts noted in his analysis that Dogecoin historically experiences a major bullish price reversal every four years, such as in the cycles of 2017 and 2021. Based on this pattern, Dogecoin's current market structure shows a high likelihood of an upcoming rise.
His chart shows that in each cycle, Dogecoin reaches the upper boundary of the rising channel, driving the price up to the then-peak. If this trend repeats, Dogecoin may follow its long-term upward channel trajectory and is expected to break above $10, setting a new historical high.
However, considering that Dogecoin's current trading price is still below $1, this prediction may seem overly optimistic. According to data from CoinMarketCap, Dogecoin's current price is $0.17, having plummeted by 40% over the past week. Influenced by a sluggish market and volatility, the performance of this meme coin has recently been bearish. Nevertheless, analysts like Potts remain optimistic about Dogecoin's future prospects.
