Dogecoin has clearly had a hard time keeping up its gains, as shown by recent price action. Dogecoin’s price has already dropped by 20% from its $0.223 price on the last day of March as bulls have failed to keep it above the support level at $0.2.
Crypto analyst Ali Martinez has reiterated his stance on the future outlook of the meme cryptocurrency. According to him, DOGE’s recent price action has largely mirrored the 2018-2021 pattern. Particularly, the crypto cemented a break out from a descending pattern and has now formed a bullish fractal that could push it into a massive parabolic bull run.
Dogecoin Bulls Losing Steam After Bull Run
The majority of cryptocurrencies have turned red in their price action in the past seven days as they’ve bled some of their gains in March. Memecoins, particularly Dogecoin, hasn’t been left out of the consolidation, registering a 10.75% downturn in the past seven days. Interestingly, most of this outflow has come in the last two days as the meme coin has decreased by around 7.7%, which is in line with the correction observed in Bitcoin.
DOGE has only had a few years of price action to look at historical performance, but the analyst has pointed out on social media a recurring trend in its movement. According to the DOGE chart shared by Martinez, DOGE went on a consolidation phase from 2018 to 2021, in which it formed a series of lower highs and a relatively straight price bottom. A final breakout of the upper trendline saw the meme coin spiking by epic proportions to reach its current all-time high of $0.7316.
Current price action shows a similar formation since reaching this all-time high in 2021. Notably, the meme coin has formed a series of lower highs and a relatively straight price bottom. The recent bull market has seen it breaking out of the upper trendline. Although it has done fairly well since breaking out, the only step left is an extended price surge past $0.73.
DOGE To $12
Despite the wider market consolidation, the market is still largely in bullish sentiment and DOGE has now formed a bullish fractal on the weekly timeframe, giving validity to the recent analysis by Martinez.
Martinez noted in his analysis a repeat of this price surge could see DOGE reaching the $12 price level. This would mean a 6660% increase from the current price level.
While the current DOGE rally does share some similarities with the 2021 pump, there are also key differences in market conditions, one of which is the market cap. At the time of writing, DOGE is trading at $0.1792 with a market cap of $25.7 billion. A $12 price would mean DOGE’s market cap entering the trillion-dollar threshold.
DOGE price struggles to hold above $0.18 | Source: DOGEUSDT on Tradingview.com
Featured image from Decrypt, chart from Tradingview.com