The Dogecoin price could be gearing up for a strong bullish move, as a crypto analyst has identified a recurring pattern in the meme coin’s movements. This optimistic outlook on Dogecoin’s future trajectory comes after the meme coin experienced a severe price crash of over 46%, pushing it to new lows.
Dogecoin Price Gets Ready For Major Bullish Move
During its price pullback in December, Dogecoin experienced a massive 46% crash, plummeting from its yearly high as its momentum underwent a significant cooling. Despite this correction, the meme coin is showing signs of recovery, experiencing renewed strength after recording substantial gains this January.
Crypto analyst Maelius shared on X (formerly Twitter) that the recent Dogecoin crash may have driven its price to its lowest point, potentially setting the stage for its next bullish move. According to his analysis report, which notes Dogecoin’s price action during previous cycles, the consistency in the magnitude of previous waves reinforces the likelihood that the meme coin has already hit its bottom.
Looking at the analyst’s Dogecoin chart, the meme coin’s price history reveals a recurrent pattern of cyclical waves characterized by massive rallies followed by sharp corrections. Each upward move, marked by a wave number on the chart, has strengthened during individual cycles.
For instance, in April 2021, Dogecoin recorded a 53% decline, followed by a massive 1,175% rise to new all-time highs. A similar but more significant price crash occurred during the bear market from July 2022 to 2023. At the time, the Dogecoin price experienced multiple price drops and a prolonged consolidation period. Towards the end of 2023, the meme coin saw a modest recovery, with its price increasing by 308%.
Another notable aspect in Maelius’s analysis is the highlighted buy zone on the Dogecoin price chart. This critical area has historically served as a strong supply level for Dogecoin, representing a price range where demand surges and accumulation occurs.
According to Maelius, Dogecoin has bounced off this buy zone, a development viewed as a positive move for the meme coin’s next upward movement. With the belief that Dogecoin has reached its bottom and its recent bounce off the buy zone, the analyst foresees a bullish surge that could push the meme coin to a new all-time high of $2.3.
Maelius also pointed out that each upward move in the previous cycles was more powerful than the last, implying that Dogecoin’s next price rally could be even stronger than those observed in the earlier cycles.
Dogecoin Price Chart Forms Bullish Pennant
A new Dogecoin price analysis by Trader Tardigrade shows that the meme coin is currently forming a new Bullish Pennant on its 4-hour chart. A Bullish Pennant is a technical chart pattern resembling a small symmetrical triangle, indicating a potential upward trend continuation.
In the case of Dogecoin, the formation of a Bullish Pennant suggests that after experiencing a previous rally, Dogecoin is consolidating and could be getting ready for another price surge as it breaks out of this pattern. CoinMarketCap’s data reveals that Dogecoin is slowly picking up momentum, soaring by 19.3% over the past week to reach a price of $0.38.
Featured image created with Dall.E, chart from Tradingview.com
