Dogecoin Could Rally If Price Holds Support

An analyst has explained how Dogecoin could observe a significant rally next if its price can hold the bottom level of its current pattern.

Testing the Lower Bound of an Ascending Channel

In a new post on X, analyst Ali Martinez discusses a long-term pattern forming in Dogecoin’s weekly price. This pattern is known as the “Ascending Channel” from technical analysis (TA), a type of Parallel Channel.

A Parallel Channel is a consolidation pattern where the asset’s price remains locked between two parallel trendlines. The upper level typically serves as resistance while the lower level acts as support.

Breakouts beyond these lines imply a trend continuation—escaping above suggests bullish momentum, while dropping below indicates bearish behavior.

Channels can be categorized based on the trendline alignment:
1. Ascending Channels: Sloped upwards with higher lows and higher highs.
2. Descending Channels: Sloped downwards indicating consolidation to the downside.
3. Time-Axis Channels: Trendlines parallel to the time axis without a specific designation.

The chart shared by the analyst reveals that Dogecoin’s weekly price has traded within an Ascending Channel for the last decade. The asset has recently declined and is nearing the channel’s lower bound at $0.16.

Historically, Dogecoin successfully found support at this level during late 2024. Analyst Martinez notes, “All eyes on Dogecoin $DOGE! If it holds this level at $0.16 and bounces, a move to $2 could be next!” This target is near the channel’s middle line, which has previously interacted with the price.

The outcome remains uncertain; there’s the potential for a breakdown that could lead to bearish action.

Current DOGE Price

As of now, Dogecoin is priced around $0.176, reflecting a decline of more than 20% over the past week.