Dogecoin is right where previous bullish rallies took off: Analyst

In a new post on X, analyst Ali Martinez discussed how the weekly price of Dogecoin has entered a significant buying zone in history. Below is the chart shared by Martinez, showing this trend.

As can be seen on the chart, the weekly price of Dogecoin has almost followed an Ascending Channel over the past decade. The "Ascending Channel" here refers to a technical analysis pattern (TA) formed when an asset trades between two parallel upward-sloping trend lines.

The upper line of the model tracks the successive higher peaks of the price, while the lower line connects the higher lows. The upper line is considered a source of resistance and the lower line a source of support. Although this may be true, Dogecoin has fallen below the lower line of the long-term ascending channel several times over the past few years, the most recent being this year. However, in each of these appearances, the asset has found support at a trend line slightly lower than the lower level of the Ascending Channel. The analyst described the shaded zone between these two lines as a "historically strong buying zone." Looking at the chart, it is clear that many significant price increases of Dogecoin began after the price tested this zone. Currently, this token is trading within this zone, with recent attempts to re-enter the ascending channel having failed. It is still unclear whether Dogecoin will break into this channel and have the potential to create another price surge, or whether this cycle will break the pattern. The Ascending Channel is just a type of pattern with parallel trend lines existing in TA. When the consolidation of assets occurs in a downward direction, this pattern is called the Descending Channel. As Martinez pointed out in another post on X, another memecoin, Pudgy Penguins (PENGU ), has recently broken out of such a channel.

As shown in the chart above, the 1-hour price of Pudgy Penguins has slipped down inside a descending channel over the past two weeks, but has just surged above the resistance line. "PENGU targets $0.041 after breaking out of the descending channel!", the analyst said.