Dogecoin’s Parallel Channel Formation Hints At A Path To New All-Time High

Dogecoin‘s persistent bearish performance might be coming to an end shortly as the meme coin appears to have formed a bullish chart pattern, capable of igniting upward momentum. With price movements eyeing a bounce toward the upside, crypto analysts anticipate an upsurge for DOGE to new highs.

A Major Breakout Brewing For Dogecoin

Dogecoin’s recent price action has shown promising signs of a potential major growth. Trader Tardigrade, a market expert and investor highlighted that DOGE is gaining traction as it maintains a move within a defined chart pattern, setting itself up for a potential breakthrough into a new all-time high.

Specifically, Dogecoin has been moving along a Parallel Channel formation, sometimes with overshoot and without. The parallel channel is usually known for its robust bullish moves for DOGE with increasing buying interest from investors.

As seen in the monthly chart, this key pattern has historically triggered a major surge for the meme coin, leading to a new all-time high and a market top. Should the trend continue, Dogecoin may be poised for a substantial surge, attracting the interest of both retail traders and long-term investors.

In the ongoing cycle, the next move up in DOGE’s price is playing out similarly to the 2017 market cycle, where the price touched the channel lines. Meanwhile, the bull market in 2021 and the bear market in 2019 surpassed the channel lines on the upside and the downside.

With the pattern pointing to a rally to a new all-time high in the coming months, Trader Tardigrade has placed the next possible target for DOGE around the $3.69 price level. Considering past scenarios, the $3.69 mark could turn out to be its market top for this cycle or little about the level.

DOGE’s Bear Market To Begin Within The Year

While Dogecoin gears up for a substantial rally to new highs, its bull run is likely to end in the upcoming months, which will cause the beginning of its bear phase. Market expert Chandler delved into DOGE’s recent price action and has pinpointed the potential timeline for the meme coin to enter its bear market phase.

Chandler also revealed his strategy to engage DOGE’s price movement in the following months. The expert intends to hold his position until at least the Fibonacci time zone at 0.236, particularly till March 24. 

According to Chandler, historical trends show that after a week or two of crossing the 0.236 Fibonacci level, it is the ideal time to sell DOGE and exit the market. After this level, the next Fibonacci point to watch is around 0.382. Once DOGE enters this area around October 20, the expert expects the bear market phase to begin.

Presently, DOGE was trading at $0.250, demonstrating a nearly 3% decrease in the last 24 hours. Investors seem to be capitalizing on the recent descent as its trading volume has surged by more than 52% in the past day, indicating growing confidence in the meme coin.

Featured image from Unsplash, chart from Tradingview.com