- In a recent development, Dogecoin (DOGE), the largest dog-themed cryptocurrency by market cap, is predicted to experience an epic breakout, according to crypto analyst Ali.
- Despite a lackluster performance in April and a slow start in May, the current price activity of Dogecoin has attracted the attention of traders and analysts.
- Ali suggests that Dogecoin’s price fall is a typical precursor to major bull runs, and the current 47% fall could be a healthy retracement, setting the stage for a potential bull run.
Crypto analyst Ali predicts a potential breakout for Dogecoin (DOGE) following a period of lackluster price activity. The current 47% price fall is seen as a healthy retracement, indicative of a potential bull run.
Dogecoin’s Price Activity Sparks Interest
Despite closing April with a 40% decrease and starting May with a 3.39% dip, Dogecoin’s price activity has sparked interest among traders and analysts. Many are keenly observing its movements, anticipating what might happen next. According to Ali, the current price fall is characteristic of Dogecoin’s behavior before major bull runs.
Descending Triangle Pattern Indicates Potential Breakout
Ali further explains that Dogecoin’s current 47% fall could be a healthy retracement, potentially paving the way for a bull run. This is in line with a breakout from a descending triangle pattern, a common signal for a period of consolidation followed by a breakout. Given Dogecoin’s history, the breakout from this pattern could be particularly significant.
Historical Patterns Suggest Potential Bull Run
In 2017, Dogecoin broke out of a descending triangle, retraced by 40%, and then entered a 982% bull run. A similar pattern was observed in 2021 when Dogecoin broke out of a descending triangle, retraced by 56%, and then rose by a massive 12,197%. Currently, in 2024, Dogecoin has once again broken out of a descending triangle and is experiencing a 47% price correction, similar to past cycles.
Conclusion
With Dogecoin breaking out of a descending triangle pattern and undergoing a significant correction, the stage might be set for a potential bull run. However, as with any prediction in the cryptocurrency market, there are no guarantees, and past performance does not guarantee future outcomes. Whether Dogecoin will soar to new highs or not remains to be seen. At the time of writing, Dogecoin was up 2.93% in the last 24 hours to $0.128, reflecting the general market rebound after a slump at the start of May.
