An analyst has pointed out how Dogecoin could see a strong surge if the support level of this technical analysis (TA) pattern holds.
Dogecoin Is Retesting The Support Line Of An Ascending Channel
In a new post on X, analyst Ali Martinez has shared a pattern forming in Dogecoin’s 12-hour price chart. The pattern in question is an Ascending Channel from TA, a type of Parallel Channel.
Parallel Channels form whenever an asset’s price observes consolidation between two parallel trendlines. The upper line of the pattern provides resistance, while the lower one acts as support.
When these trendlines are sloped upward, the Parallel Channel is known as an Ascending Channel. As the asset moves through this channel, its price observes some net growth.
Either trendline not holding up can naturally result in a breakout in that direction. This means that a surge above the channel can be a bullish signal, while a drop under it a bearish one.
Like the Ascending Channel, there is also a Parallel Channel known as the Descending Channel, emerging when the price witnesses net consolidation to a downside.
Now, here is the chart shared by Martinez that shows the Ascending Channel that the 12-hour price of Dogecoin has been moving inside for the past few months:
As displayed in the above graph, Dogecoin retested the upper level of the Ascending Channel in September and it ended up finding rejection. Since then, the memecoin has plummeted back toward the lower level situated around $0.19.
“$0.19 is mission-critical for DOGE,” noted the analyst. As mentioned before, breakdown of an Ascending Channel support level can signal a bearish continuation.
In the event that the support level does end up holding, Dogecoin could see a rebound. Martinez has said that the next stop for the memecoin in this scenario could be $0.33, corresponding to the resistance level of the Ascending Channel. It now remains to be seen how the DOGE price will develop in the coming days.
Earlier, the analyst also shared a chart for another altcoin trading inside a Parallel Channel: XRP. In this case, the 12-hour price of the cryptocurrency is following a Parallel Channel with trendlines parallel to the time-axis.
From the graph, it’s visible that XRP has been plunging inside the channel recently and could be heading toward a retest of the lower level, which is situated at $2.
DOGE Price
At the time of writing, Dogecoin is floating around $0.187, down 24% in the last seven days.
