Cryptocurrency analyst Ali Martinez looked at the current price correction of Dogecoin (DOGE) in a detailed report shared through X. He suggested that it consistently happens before substantial price increases. Martinez gave useful information about how Dogecoin’s market is behaving right now by using patterns from the past to guess how prices will change in the future.
Martinez looked at the descending triangle chart pattern, which is a negative sign made up of a downward trendline crossing a flat support line. Martinez said that in the case of DOGE, this pattern often comes before significant bullish breaks, even though it usually means that a downward trend will continue.
Martinez said that The current drop in the price of Dogecoin is common before big bull runs and Let’s get started. He talked about how important this pattern is historically by referencing other times when Dogecoin has traded: “In 2017, DOGE broke out of a descending triangle.” Then DOGE went down by 40% before starting a 982% bull run!”
Martinez added to what he already said by looking at more recent cycles and saying, “In 2021, DOGE broke out of a descending triangle once more.” Then DOGE went back up by 56% and then went up again by 12,197%!” Martinez says that these retracements are similar to how Dogecoin has behaved in the past, which makes it possible for big gains.
Dogecoin Market Analysis
Martinez said this about the current state of the market: “Now, in 2024, DOGE has once again broken out of a falling triangle! It is going through a 47% price correction, which is similar to what happened in earlier cycles and could start the next DOGE bull run!” For this reason, the current market decline may be an excellent opportunity to buy before returns become possible.
If you look at Martinez’s research, you can see that Dogecoin’s price moves in cycles, with sharp drops followed by strong starts. “Dogecoin seems to repeat its previous bull cycles over the years!” “All you need is a little patience,” he said in the end.
But even with this positive view, the short term outlook for Dogecoin’s price is not favorable. Since the middle of April, DOGE has faced strong technical resistance, mainly at the 50-day Exponential Moving Average (EMA), which shows that there is strong selling pressure at higher price levels.
The problem is made more severe by a general decline in the market, which got more serious when Dogecoin’s price broke through the important 100-day EMA, which had been a support level. This breach shows that the market is losing confidence, which could cause more loses.
