Dogecoin in the past few weeks has displayed immense price strength breaking past crucial resistance levels, sparking optimism about its short-term performance. However, this upward momentum could be poised for notable price swings as a crypto analyst has predicted pullbacks in the upcoming days.
Historical Trends Puts Dogecoin Investors On A Bumpy Ride
Ali Martinez, a seasoned crypto expert and trader, has explored Dogecoin’s present and past price action following its recent upside surge. After comprehensive research, the market expert revealed a shocking price trend that implies that the dog-themed meme coin could witness two key pullbacks in the short term.
The analyst points to patterns in the last two market cycles, which show recurring phases of steep corrections before picking up steam once again, suggesting a similar price movement in the ongoing bull cycle.
According to Ali Martinez, the meme coin experienced two significant corrections of about 40% and 84% during its 9,470% rally in the 2017 bull cycle. Furthermore, the same pattern was observed in the 2021 parabolic phase where the price of Dogecoin surged by over 30,700%, but experienced two notable pullbacks of 46% and 53%.
With DOGE currently showcasing remarkable upbeat pressure considered as its next bull run, Ali Martinez’s perspective suggests that history might repeat itself and the digital asset could be faced with two key corrections as it ascends to pivotal levels. “Now, as DOGE seems to be entering another parabolic run, remember that corrections are part of the journey,” he stated.
Interestingly, these anticipated declines could act as areas of consolidation for the digital asset, enabling DOGE to level out and possibly strengthen its course to more rallies.
Thus far, Martinez has underlined patience and conviction as the two essential factors for an investor hoping to become a millionaire with Dogecoin, while noting there is no need to panic about the recent 13% decline.
Addressing Dogecoin’s price action in the shorter time frame, Martinez believes a 45% increase could be imminent due to the formation of a bull flag pattern. In the event that the $0.35 support level holds steady, the expert claims that the pattern might trigger a 45% rally with the aim of reaching the $0.56 mark.
Retail Investors’ Sentiment Toward DOGE Outperforms Bitcoin
Despite possible impeding pullbacks, Dogecoin continues to gain interest from retail investors more than Bitcoin, the largest cryptocurrency asset, as evidenced by a recent poll conducted by Ali Martinez about which asset is ideal for a $100 investment in the current market phase.
After securing an 83% vote against Bitcoin, Martinez asserted that “retail investors are leaning toward DOGE over Bitcoin.” Since Bitcoin is frequently considered as being expensive, he stated that DOGE is gaining attention as an alternative and cost-effective choice with profit potential, especially with support from well-known business mogul and billionaire, Elon Musk.
Featured image from Adobe Stock, chart from Tradingview.com