The price of Dogecoin seems poised for a potential bullish breakthrough, according to a crypto analyst who has pointed out a recurring trend in the meme coin’s price movements. This hopeful prediction follows a substantial downturn where Dogecoin’s value fell by over 46%, reaching new lows.
Dogecoin Prepares for Significant Bullish Movement
Following a downturn in December, Dogecoin saw a dramatic 46% drop from its annual peak, resulting in a notable reduction in momentum. Yet, the meme coin is beginning to show signs of recovery, gaining strength after significant increases noted in January.
Analyst Maelius stated on X (formerly Twitter) that the recent downturn may have led Dogecoin to reaching its lowest price point, potentially paving the way for the next upward movement. His analysis, which draws on Dogecoin’s price trends from past cycles, suggests that the coin may have found its lowest point.
The analyst’s Dogecoin chart demonstrates a continuous trend of price waves, marked by significant increases followed by corrections. Each surge, denoted by a wave number on the graph, has become stronger with each cycle.
For example, in April 2021, Dogecoin faced a 53% drop, succeeded by a monumental rise of 1,175% to reach new all-time highs. A more pronounced decline occurred during the bear market from July 2022 to 2023, where the price of Dogecoin experienced several dips and a lengthy consolidation period. By the end of 2023, it noted a recovery, reclaiming 308% of its value.
Another important factor in Maelius’s analysis is the emphasized buy zone on Dogecoin’s chart, historically proving to be a strong supply area. This range indicates a significant demand influx and where accumulation happens.
Maelius believes Dogecoin’s rebound from this buy zone signals favorable conditions for its next upwards movement. With the assertion that Dogecoin has reached its lowest point and its recent bounce off the buy zone, the analyst anticipates a bullish push that may elevate the meme coin to a new all-time high of $2.3.
He also noted that each upward cycle thus far has been more vigorous than the previous ones, suggesting that Dogecoin’s upcoming rally could surpass previous ones in strength.
Dogecoin Price Chart Indicates Bullish Pennant Formation
A recent analysis by Trader Tardigrade reveals that Dogecoin is currently forming a Bullish Pennant pattern on its 4-hour chart. This technical formation resembles a small symmetrical triangle, which typically indicates a continuation of an upward trend.
In Dogecoin’s case, the emergence of a Bullish Pennant implies it is consolidating after a previous increase, poised for another price spike upon breaking free from this structure. According to CoinMarketCap, Dogecoin has been gaining momentum, climbing by 19.3% over the past week and reaching a price of $0.38.