Crypto expert Ali Martinez has conducted an analysis suggesting that the recent downtrend in Dogecoin (DOGE) could be a sign of an upcoming major bull run, based on historical data. Martinez notes that patterns like the descending triangle, typically seen as bearish, have previously resulted in significant rallies for DOGE. For instance, after a 40% drop in 2017, Dogecoin experienced a remarkable 982% bull run. Similar patterns were observed in 2021, leading to a 12,197% increase after a significant drop. Currently, in 2024, Dogecoin is showing a similar trend, indicating potential for another surge, according to Martinez.
Martinez’s analysis highlights Dogecoin’s pattern of sharp declines followed by dramatic recoveries, suggesting that patience could lead to lucrative outcomes. However, a short-term analysis reveals that Dogecoin is facing strong resistance at the 50-day EMA, with weakening support as prices dip below the 100-day EMA. The 200-day EMA now plays a crucial role in Dogecoin’s immediate market position.
Short-Term Dogecoin Price Analysis
Amidst the broader market downturn, technical indicators like the Relative Strength Index (RSI) show Dogecoin nearing oversold territory without indicating a definite reversal yet. This indicates that selling pressure has not completely eased, and a further decline could set the stage for a recovery, marking a potential local bottom.