Dogecoin: Charting DOGE’s Course to a Bull Run
A prominent crypto strategist closely follows Dogecoin (DOGE) and suggests that the memecoin will enter a bull market phase if it can overcome two key resistance levels.
The analyst, Ali Martinez, shared on social media X that DOGE is trading within a large triangle pattern. According to Martinez, DOGE has the potential to achieve a new all-time high if it convincingly breaks out of this technical formation.
#Dogecoin is approaching the apex of this multi-year descending triangle formation.
A weekly candlestick close above $0.0835 could trigger the beginning of a new $DOGE bull run, potentially toward $1. Yet, we must watch out for the $0.0482 support, as any sign of weakness… pic.twitter.com/Emcwfyv6cE
— Ali (@ali_charts) October 13, 2023
Martinez believes that Dogecoin is approaching the apex of a multi-year descending triangle formation. A weekly candlestick close above $0.0835 could trigger the beginning of a new DOGE bull run, with a potential target of $1. However, Martinez also advises caution, as any signs of weakness around the $0.0482 support level could lead to a new yearly low.
Looking at the trader’s chart, it becomes clear that the analyst identifies two key resistance levels for DOGE. The first one is the multi-year diagonal resistance within the triangle, and the second is the horizontal resistance at $0.083.
At the time of writing, DOGE is trading at $0.059, a considerable drop of more than 91% from its all-time high of $0.731 in May 2021.
When considering the top cryptocurrency by market cap, Martinez is closely monitoring Bitcoin’s (BTC) realized price warm supply metric.
READ MORE: The Bitcoin Advantage in Turbulent Financial Times
This metric tracks the average buying price of coins that have not moved for one week to six months. According to Martinez, a new bull run for BTC may take shape if it manages to move above the current value of this on-chain metric.
Specifically, Martinez points out that the Bitcoin warm supply realized price indicator suggests that the bull run will only reignite if BTC secures a sustained close above $28,233.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
