Dogecoin, the front-runner in the cryptocurrency meme coin genre, is showing bullish signals on its technical charts that could indicate an imminent rally, according to prominent cryptocurrency analyst Ali Martinez. He means by X:
I feel like my fellow citizens have been distracted by the new shiny meme coins, but Dogecoin remains the most important altcoin in the space. From a technical perspective, DOGE appears to mirror the 2018-2021 pattern. If so, DOGE may be at the beginning of a massive parabolic bull market!
The DOGE/USD weekly price chart presents a descending triangle pattern that has been in place since the May 2021 peak, which is typically bearish. However, price action in recent months has been decidedly bullish, with DOGE having broken above the upper trendline of the triangle in November 2023. This move invalidated the bearish sentiment typically associated with this pattern, marking a strong shift in market dynamics.
As March closes, Dogecoin price has broken above the 0.5 Fibonacci retracement level of the downtrend at around $0.19057, hinting at the potential for further gains. At press time, DOGE was trading at $0.2072, up 86% in March.
The Fibonacci retracement levels listed on the chart are based on the swing highs and lows of previous market cycles. If Dogecoin continues to hold on to the Fibonacci levels as it has historically done, the immediate target would be the 0.618 level ($0.26241), followed by the 0.786 level ($0.41376) and the all-time high of $0.73905.
Extending to price discovery, Fibonacci extension levels are plotted at $1.54481 (1.272 Fib level), $2.27007 (1.414 Fib level), $3.94628 (1.618 Fib level), and $6.22241 (1.786 Fib level) Fibonacci levels). These numbers represent areas of concern going forward, and if prices continue to rise, there may be resistance.
Martinez’s analysis also includes predictions based on Dogecoin’s 2018-2021 bull run price trend, as shown by the light gray line in the chart. This predicted trajectory is extrapolated from past price patterns, indicating a parabolic rise for DOGE. It’s worth noting that if history repeats itself, DOGE prices may have already surged in April.
According to Martinez’s prediction, if Dogecoin follows historical patterns, its price could surge to nearly $1.5 by April. This price target is further supported by Fibonacci extension levels, with $1.54481 (1.272 Fib level) serving as a potential barrier.
Subsequently, DOGE price may need to slow down initially and remain in the consolidation zone between the previous all-time high and 1,272 Fib for a few months. According to Martinez’s prediction, the rebound is likely to continue.
In a similar explosive move, DOGE could rise above $1.50 and then smash the Fibonacci levels at $2.27007 (Fibonacci level $1.414), $3.94628 (Fibonacci level $1.618), and $6.22241 (Fibonacci level $1.786) until the rally stalls again just above $6.30. The last move could lead Dogecoin to break through $11.11 (2.0 Fib level) and potentially find a cycle high, analysts say.
At press time, DOGE price was $0.2077.
