In a recent tweet, crypto analyst Ali predicts an epic breakout scenario for the first and largest dog-themed cryptocurrency by market capitalization, Dogecoin (DOGE).
Dogecoin experienced lackluster price activity in April, closing the month down 40%. May has also kicked off with a slow start for the dog coin, with its price down 3.39% so far. The current Dogecoin price activity has piqued the interest of traders and analysts, with many eagerly watching its movements to see what happens next.
According to crypto analyst Ali, Dogecoin's price fall is typical of its behavior before major bull runs. Furthermore, Dogecoin's current 47% fall could be a healthy retracement, paving the way for a potential bull run amid a breakout from a descending triangle pattern.
The descending triangle pattern, characterized by lower highs and horizontal support levels, usually signals a period of consolidation followed by a breakout. Given Dogecoin's history, the breakout from this pattern could be especially noteworthy.
Ali cites examples to bring home his point. In 2017, DOGE broke out of a descending triangle. Afterward, the price retraced by 40% before entering a 982% bull run. Similarly, in 2021, Dogecoin broke out of a descending triangle and then retraced by 56% before rising by a massive 12,197%.
Fast forward to 2024, and Dogecoin has once again broken out of a descending triangle and is currently experiencing a 47% price correction, much like past cycles.
With DOGE breaking out of a descending triangle pattern and undergoing a significant correction, the stage might be set for a potential bull run, propelling the dog coin to new highs.
However, as with any prediction on 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, mirroring the general market rebound after a slump at the start of May.