Dogecoin Breaks Out Of Descending Triangle Like It Did In 2021, Analyst Sets $6 Target

Dogecoin's Bullish Prospects Despite Recent Correction

The Dogecoin price action has exhibited a bearish trend since April. Short-term projections remain bearish, with the cryptocurrency experiencing a 47% correction from its peak. However, one analyst maintains that Dogecoin's fundamentals remain strong and predicts a forthcoming bull run.

Dogecoin's Historical Bull Run Patterns

According to crypto analyst Ali Martinez, Dogecoin's current price action aligns with previous bull run patterns. Notably, Dogecoin broke out of a descending triangle pattern in late 2023, a trend that preceded significant price surges in 2017 and 2021.

In 2017, after breaking out of the triangle, Dogecoin corrected by 40% before embarking on a 982% bull run. In 2021, a similar breakout was followed by a 56% retracement and a subsequent 12,197% surge to its all-time high of $0.7316.

Potential Bull Run in 2024

In 2024, Dogecoin has once again broken out of a descending triangle. It is currently undergoing a 47% correction, mirroring previous cycles. Martinez suggests that this correction may precede a similar bounce.

To initiate the bull run, Dogecoin must break above resistance at $0.224. If successful, it could rally back to its 2021 high and potentially reach a target of approximately $1.2.

Long-Term Price Projections

Martinez's chart projects an ultimate price surge above $6 in this bull cycle. This would require Dogecoin to regain momentum and rally over 4,700% from current levels. While ambitious, Dogecoin has historically achieved impressive rallies, including a 12,000% surge in 2021.

Despite its recent dip, Dogecoin has experienced significant volatility in 2024. As of writing, it trades at $0.125, down 16.92% in the past week. However, trading volume has increased by 50% in the past 24 hours, indicating renewed investor interest.