The meme-inspired cryptocurrency Dogecoin ($DOGE) has formed a chart pattern that suggests the price of the cryptocurrency may surge over 23,000%, akin to a rise it experienced last year when the same pattern was formed on its chart.<\/p>\n
The chart pattern was first spotted by popular cryptocurrency analyst Ali Martinez, who noted on social media that on Dogecoin\u2019s weekly chart a descending triangle has formed. The last time Dogecoin encountered this pattern, it catapulted with an almost unfathomable rally of 23,200%. This revelation has stoked speculation about whether Dogecoin could reproduce a similarly meteoric rise.<\/p>\n
Five years ago, Dogecoin capitalized on a significant uptrend, reaching its then-all-time high of $0.0187 in January 2018. However, the cryptocurrency underwent a downward trend that lasted over two years following that rally.<\/p>\n
Dogecoin\u2019s fall persisted until the dawn of 2021, when it showed hints of a breakout. As CryptoGlobe reported at the time, DOGE\u2019s price explosion was preceded by a surge in search interest for the cryptocurrency, partly triggered by calls to help it move to $1 and by influencers commenting on the situation.<\/p>\n
According to Martinez, DOGE\u2019s price explosion was over 23,200% from the cycle\u2019s bottom. After reaching its peak, however, DOGE saw another round of declines and has been seeing its value fall over time, to now trade at $0.078, far below its $0.73 all-time high.<\/p>\n
Interestingly, Martinez\u2019s post on the chart pattern coincided with a notable accumulation trend among large holders of the meme-inspired cryptocurrency, colloquially known as whales. The analyst highlighted in a subsequent tweet that these high-level investors, who hold between 1 billion to 10 billion DOGE, have amassed 3 billion coins, equivalent to $225 million, over the past three weeks.<\/p>\n
The increasing accumulation seems to fuel the possibility that whales are also betting on a breakout from the descending triangle. However, the degree to which DOGE could rally post-breakout remains an open question, with some investors citing the cryptocurrency\u2019s growing circulating supply as a potential barrier to a significant surge.<\/p>\n
Earlier this week, the cryptocurrency\u2019s price moved up over 10% after Tesla and SpaceX CEO Elon Musk\u2019s Twitter bio changed after Twitter\u2019s rebranding to \u201cX\u201d. Musk\u2019s profile location now displays an \u201cX\u201d and a \u201cD\u201d, with the \u201cX\u201d alluding to Twitter\u2019s new identity and the \u201cD\u201d widely interpreted as a nod to Dogecoin, a cryptocurrency Musk has openly championed for the past few years.<\/p>\n