Global Macro CEO Raoul Pal has opined that meme cryptocurrency Dogecoin (DOGE) could potentially reach a new high against Bitcoin (BTC).
The chart shared by Pal shows a long-term falling wedge, which is a well-known bullish reversal pattern.
Following years of rather uneventful price action during the 2014-2020 period, Dogecoin (DOGE) experienced an enormous rally in 2021.
Pal appears to suggest that a similar scenario might play out this time around.
Another long-term descending channel has now formed, meaning that Dogecoin might be preparing for another massive breakout following years of price consolidation.
The chart shared by Pal shows a bull fag where the massive 2021 rally potentially acts as a flagpole.
Breaking above the upper boundary of the current descending channel could potentially set the stage for the creation of a new bull flag. In such a case, the leading meme cryptocurrency could potentially surge to the previous high (roughly 0.000017 BTC) and potentially record additional gains.
Pal has joked that Dogecoin (DOGE) becoming "the hardest currency on earth" would be the most amusing outcome considering its facetious nature.
However, it is worth noting that Dogecoin's enormous rally was mainly driven by Elon Musk's constant tweets that promoted the cryptocurrency. Other celebrities like Snoop Dogg also joined the trend, pushing the cryptocurrency much higher. Dogecoin ended up reaching its current peak after Musk appeared on SNL in May 2021.
It is unlikely that Dogecoin will be able to revive its luster and become a pop culture phenomenon once again. However, it is worth noting that the cryptocurrency did manage to remain in the top 10 throughout all these years, which speaks volumes about its staying power.
Vladislav Sopov