Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The meme-based cryptocurrency Dogecoin ($DOGE) has garnered the interest of both investors and analysts due to the emergence of a chart pattern that could indicate a notable price increase. This pattern had previously instigated an extraordinary rally of 23,200%, prompting many to question whether history might repeat itself.
The chart pattern was identified by prominent cryptocurrency analyst Ali Martinez, who disclosed the finding on social media. Martinez noted that Dogecoin’s weekly chart displayed the formation of a descending triangle, a pattern that had previously ignited the remarkable surge. This discovery has reignited speculation regarding the possibility of a significant rise in the cryptocurrency’s value.
Five years prior, Dogecoin underwent a notable uptrend, culminating in its all-time high of $0.0187 in January 2018. However, the excitement was short-lived, as the cryptocurrency subsequently faced an extended downward trend lasting over two years. It was not until early 2021 that DOGE began to exhibit signs of a breakout.
During that period, a surge in search interest for Dogecoin, partly driven by influencers encouraging it to reach $1, contributed to the cryptocurrency’s explosive price increase. In this cycle, Dogecoin skyrocketed by an astonishing 23,200% from its cycle low to its peak. Unfortunately, DOGE later encountered another decline, trading at just $0.078, significantly lower than its previous all-time high.
Related Posts
In conjunction with Martinez’s announcement regarding the chart pattern, large holders of Dogecoin, often referred to as whales, have been actively accumulating significant amounts. These high-net-worth investors, holding between 1 billion to 10 billion DOGE, have gathered an impressive 3 billion coins (approximately $225 million) over the past three weeks. This accumulation further fuels speculation that the whales may be anticipating a breakout from the descending triangle.
However, some investors remain wary, citing the increasing circulating supply of DOGE as a possible obstacle to a meaningful post-breakout rally. The large volume of available coins could dilute the potential effects of a price surge, tempering enthusiasm for a repeat of past performance.
Adding to the intrigue, Dogecoin saw a 10% price increase earlier this week following an update to Elon Musk’s Twitter bio. With Twitter’s rebranding to “X,” Musk’s bio now features an “X” and a “D,” interpreted as a reference to Dogecoin, a cryptocurrency he has consistently supported over the years.
The identification of the chart pattern and the heightened accumulation by whales have sparked excitement regarding Dogecoin’s potential for a significant price increase. While historical performance can provide insights, the future performance of the cryptocurrency remains uncertain. As investors keenly await further developments, the influence of market dynamics and prominent figures like Elon Musk could play a crucial role in shaping Dogecoin’s future path.
The post Dogecoin’s Chart Pattern Sparks Speculation of a 23,000% Price Surge appeared first on BitcoinWorld.
