In an engaging analysis by crypto expert Ali Martinez, it is suggested that the recent downtrend in Dogecoin (DOGE) might be a harbinger of an upcoming major bull run, based on historical data. Martinez points out that patterns like the descending triangle, often seen as bearish, have previously signaled substantial rallies for DOGE. For instance, post a 40% drop in 2017, Dogecoin enjoyed a staggering 982% bull run. Similar patterns were observed in 2021, leading up to a 12,197% increase following a significant drop. Currently, in 2024, Dogecoin exhibits a similar trend, making it a potential candidate for another surge, according to Martinez.
Martinez’s insight draws attention to Dogecoin’s repetitive behavior of sharp declines followed by dramatic recoveries, suggesting that a bit of patience could lead to lucrative outcomes. However, a short-term analysis indicates that Dogecoin faces strong resistance at the 50-day EMA, with further support weakening as prices dipped below the 100-day EMA. The 200-day EMA now serves as a critical juncture for Dogecoin’s immediate market stance.
Short-Term Dogecoin Price Analysis
Amid the broader market downturn, technical indicators like the Relative Strength Index (RSI) show Dogecoin edging closer to the oversold territory without indicating a definite reversal yet. This suggests that the selling pressure hasn’t completely subsided, and a further decline might set the stage for a recovery marking a local bottom.
