Dogecoin Eyes 23,200% Rally Amid Historic Pattern as Whales Amass 3B DOGE

Dogecoin Eyes 23,200% Rally Amid Historic Pattern as Whales Amass 3B DOGE

Time Stamp: July 25, 2023 11:11 AM

Dogecoin is currently eyeing a 23,200% rally as it repeats a previous descending triangle pattern amid a massive whale accumulation involving 3 billion DOGE.

Despite the occasional market-wide rallies, Dogecoin (DOGE) has failed to reclaim and hold above the $0.1 price. Amid this bearish reality, a prominent analyst has identified a pattern that resulted in a 23,200% rally for DOGE in 2021.

Crypto market watcher Ali Martinez called the public’s attention to a descending triangle formed on the Dogecoin weekly chart. The analyst had mistakenly noted that this pattern was observed monthly.

However, the fascinating part of the analyst’s disclosure is that the last DOGE faced this multi-year descending triangle, it rallied by an astronomical 23,200%. The recent revelation has raised questions about the asset’s ability to engineer a similar rally.

DOGE Faced Multi-Year Downtrend

Notably, DOGE leveraged a massive run five years ago to claim a high of $0.0187 in January 2018. This represented the asset’s all-time high at the time. However, an exhaustion of the run pushed DOGE into a bearish storm, as the asset registered persistent declines for over two years.

Amid these declines, DOGE formed a multi-year descending triangle on the weekly chart, as pointed out by Ali. A descending triangle is a pattern formed by lower highs connected by a diagonal line. The pattern suggests a potential continuation of a downtrend.

Dogecoin’s downtrend persisted until early 2021 when the asset showed signs of a breakout. Upon breaking out of the downtrend, DOGE rallied to its latest all-time high of $0.7376 in May 2021. Per data from Ali’s charts, this represented an impressive 23,200% increase from the cycle low.

An Eerie Repetition 

However, following the ATH, DOGE faced another round of declines, leading to its latest price. Dogecoin is now over 89% down from the all-time high. These persistent declines have resulted in the formation of another descending triangle.

Ali’s disclosure raises questions about Dogecoin’s potential to register a rally similar to the 2021 run once it breaks out. However, the analyst emphasized that a persistent weekly close above $0.08 could confirm a breakout.

Whales Amass 3 Billion DOGE

Notably, this disclosure coincides with an encouraging accumulation observed among Dogecoin whales. In a subsequent tweet, Ali highlighted that whales holding 1 billion to 10 billion DOGE accumulated 3 billion tokens worth $225 million over the past three weeks.

This accumulation pattern further compounds hopes of a potential breakout from the descending triangle. However, the extent of a DOGE rally following the breakout remains to be seen. Some investors cite DOGE’s increased circulating supply as a deterrent to such a rally. 

DOGE USD 2023 07 25 15 53 19

DOGE USD 2023 07 25 15 53 19

DOGE Weekly Chart

Impressively, Dogecoin has rallied by over 31% in the last seven weeks, registering six weekly gains out of seven closes. Despite this bullish momentum, DOGE continues to trade below the 50-day EMA ($0.0823) and 200-day EMA ($0.8684). The asset is changing hands at $0.0773.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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