Analyst Suggests Dogecoin Could Soar to $0.74 All-Time High if Monthly Close Exceeds This Threshold

An analyst has outlined how a monthly close for Dogecoin above a specified level might create an opportunity for the cryptocurrency to approach its peak value again.

Dogecoin is Positioned in the Lower Range of an Ascending Channel

In a recent update on X, analyst Ali Martinez presented a technical analysis (TA) pattern that Dogecoin’s monthly trading has been exhibiting. This pattern is identified as an “Ascending Channel,” categorized as a type of Parallel Channel.

Parallel Channels are formed when the price of an asset stabilizes between two parallel trendlines, with the upper line typically acting as a future resistance point and the lower line serving as support. A breakout from either line may indicate a continuation of the existing trend.

There are three types of Parallel Channels. The simplest type features trendlines that run parallel to the time axis, resulting in sideways consolidation.

The other two types arise when the asset consolidates at an angle. An upward consolidation creates an Ascending Channel, while a downward consolidation produces a Descending Channel. In this discussion, the Ascending Channel is particularly relevant.

Since an Ascending Channel signifies a trend of net upward consolidation, its top line unites higher highs while its bottom line brings together higher lows.

The chart provided by the analyst illustrates the Ascending Channel that Dogecoin’s monthly price has been navigating for the past several years.

The chart expresses that the monthly price of Dogecoin has recently dipped to the lower boundary of this long-standing Ascending Channel and appears to be breaching it. Should the cryptocurrency continue to decline, a breakout below this level may be confirmed.

Conversely, if it manages to rebound above the channel’s lower boundary, it may once again follow the trajectory suggested by the pattern. Additionally, the asset is close to also surpassing the 0.786 Fibonacci Retracement level.

Fibonacci Retracement levels are derived from ratios of the well-known Fibonacci series. The 0.786 Fibonacci Retracement line on the chart is positioned near the $0.20 mark. The subsequent significant level, the 1.000 Retracement, corresponds to DOGE’s peak value of approximately $0.74.

As Martinez notes,

A monthly close above $0.20 for Dogecoin could set the stage for a rally towards its all-time high of $0.74. This kind of breakout would indicate strong bullish momentum and may attract more investor interest.

Current DOGE Price

Presently, Dogecoin is trading at about $0.17, having increased by over 9% within the last week.