Analyst Ali Martinez believes that Dogecoin (DOGE) could be ready for a significant bullish move after spending a year evolving in a descending wedge on its weekly chart, with historical data showing that the memecoin has several times broken out above similar formations during bullish phases.
What happened: a year-long figure close to a key test
Martinez published his analysis on X, identifying a descending wedge structure that has contained the price action of Dogecoin since the beginning of 2024. The token has recently returned to the lower bound of the figure, testing a support level that has historically preceded bullish breakouts.
A descending wedge forms when the price evolves between two converging descending trend lines.
Technical analysts generally consider these figures as bullish continuation or reversal patterns.
Martinez highlighted several previous descending wedges in Dogecoin's chart history. Each resolved with a breakout to the upside.
The current figure is the largest wedge that the token has encountered.
Also read: XRP Pattern Hints To Potential $4 Price Target, Analyst Claims
Why it matters: historical precedent suggests bullish potential
"Dogecoin DOGE tends to respect wedge structures, and a breakout from this could be powerful," wrote Martinez.
The analyst's observation is significant given Dogecoin's history with similar chart patterns. The key point for traders watching the memecoin remains whether the current support level will hold.
A confirmed breakout would indicate a sustainable bullish momentum, according to the classical interpretation of technical analysis.
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