An analyst suggests Dogecoin may be preparing for a significant rally if historical patterns hold true. Ali Martinez highlighted a similar trend in Dogecoin's monthly price chart, noting its break out from a multi-year Descending Triangle, a technical analysis pattern.
After the breakout, Dogecoin experienced a significant rally, seeing prices increase by 208%. Although it faced a 65% retracement, this mirrors past cycles where post-retracement rallies occurred.
This historical behavior suggests the potential for another bull run, as noted by Martinez, aligning with previous instances where similar patterns preceded major price increases.
Additionally, Dogecoin's whale activity has been rising, implying increased network volatility. Such activities could result in further price surges if these large holders are accumulating DOGE.
Currently, Dogecoin is trading at around $0.11, down 7% from last week, reflecting the fluctuating activity observed by analysts.
