Analyst Ali Martinez suggests potential for a massive Dogecoin rally, breaking the current sideways trend and aiming for a new all-time high above $0.80.
The value of Dogecoin has been relatively stable on shorter timeframes, but there are indications that the cryptocurrency could be gearing up for a substantial surge. While the broader bull market within the emerging sector has not been favorable to Dogecoin, an analyst has suggested a potential shift in direction towards a new all-time high.
At present, DOGE has encountered resistance at its current levels, experiencing a slight 2% decline over the past 24 hours. Its performance over the previous week has been similarly lackluster, although it maintains positive growth over the two-week and 30-day periods.
Is Dogecoin Poised for Significant Growth? Analyst Suggests 23,000% Surge
According to analyst Ali Martinez, Dogecoin is following previous bullish patterns. Despite short-term bearish momentum, the leading meme-based cryptocurrency could see a substantial rally surpassing its existing all-time high around the $0.80 mark.
As illustrated in the accompanying chart, Dogecoin typically experiences a period of sideways movement, which historically precedes an explosive surge to a new all-time high. On the weekly chart, these rallies have resulted in gains of 8,000% and 23,000%.
For instance, during the late 2017 surge in Bitcoin's price to $20,000, Dogecoin also broke out of its 679-day sideways trend, resulting in an 8,700% rally. Similarly, in 2021, the meme-inspired coin saw a comparable breakout, albeit with an even greater rally.
The chart suggests that Dogecoin could potentially witness an even more substantial rally, surpassing the $1 and $3 thresholds if historical patterns repeat. This upward movement is supported by Dogecoin's tendency to exhibit more aggressive upward momentum following breaks from prolonged sideways trends.
The analyst remarked:
The current price action of #Dogecoin seems to echo patterns observed in previous bullish cycles. Should history repeat itself, we may witness $DOGE embark on a parabolic breakout around April!
Short-Term Outlook for DOGE Price
On shorter timeframes, the $0.10 level presents a crucial resistance point for Dogecoin to realize its bullish potential. Reports from NewsBTC indicate the possibility of a breakout, contingent upon DOGE reclaiming the $0.0914 level before further gains can be achieved.
This week, the cryptocurrency market may face headwinds from macroeconomic developments, potentially leading to increased volatility. However, if Dogecoin can maintain its current position, the prospects for a sustained bull run will likely strengthen.