Dogecoin (DOGE) has been stagnant recently, but according to market analyst Ali Martinez, it might be on the verge of a significant breakout. Martinez points out that Dogecoin’s historical patterns suggest that a rally could soon be underway, based on its past performance.
Familiar Pattern Signals Potential Breakout
Dogecoin’s price movement follows a recognizable pattern known as a breakout from a multi-year descending triangle. Every time this pattern has appeared, it has been followed by a price rally of at least 200%. After this initial surge, a retracement of about 60% typically occurs before the coin embarks on another massive bull run.
Related article: Dogecoin Whales Scoop Up 1.4 Billion Coins: Is a Bullish Breakout Ahead?
Dogecoin has just completed the second stage of this cycle, having retraced by 65%. This suggests a potential upward rally is on the horizon. While a full-blown bull run is anticipated, Martinez forecasts that, in the short to mid-term, Dogecoin could experience a 200% price increase.
His analysis traces this trend back to 2015, and Dogecoin has followed this cycle three times since then. Although previous trends do not guarantee future results, Dogecoin’s life cycle often mirrors past behavior, especially with significant whale adoption.
Price Surge Could Bring DOGE to December 2021 Levels
Currently, Dogecoin’s price has risen by 2.55% over the last 24 hours and is trading at $0.1118. A 200% price increase would take DOGE to $0.2236, a level that hasn’t been reached since mid-December 2021.
Related article: Dogecoin Targets $0.20 as Whales Accumulate 1 Billion DOGE
Despite the clear historical pattern, some uncertainty remains. The broader cryptocurrency market is currently in a consolidation phase rather than a breakout one, which could influence Dogecoin’s price trajectory.
Additionally, new projects like Sui are entering the meme coin space, potentially challenging Dogecoin and others like Shiba Inu (SHIB) in the long term. Unlike many cryptocurrencies with strong internal ecosystems, Dogecoin lacks this kind of fundamental support.
However, its association with Elon Musk continues to provide some optimism, as his promotion could still give DOGE the boost it needs.
