当资产处于通道内时，它可能会面临顶线阻力和底线支撑。突破这两个水平中的任何一个都可能意味着趋势会继续朝着这个方向发展。An analyst explained that if this pattern continues, Dogecoin could eventually rise by approximately 6,770%.
Dogecoin has been trading within a long-term ascending channel.
In a new post on X, Analyst Ali Martinez discussed the long-term pattern that the weekly price of Dogecoin has been in. From a technical analysis perspective, this pattern is an ascending parallel channel.
A parallel channel refers to a consolidation pattern formed when an asset's price moves within two parallel trendlines. The upper line is formed by connecting consecutive highs, while the lower line connects the lows.
When an asset is within the channel, it may face resistance at the upper line and support at the lower line. Breaking out of either of these two levels may indicate that the trend will continue in that direction.
There are three types of parallel channels: channels parallel to the time axis, channels with a positive slope, and channels with a negative slope. The first type does not have a specific name, but the latter two do; they are called ascending parallel channels and descending parallel channels, respectively.
Given that these two types of trendlines are angled, they correspond to the consolidation phases that occur when the asset is either rising or falling. As shown in the chart shared by the analyst, Dogecoin seems to have been in such a pattern for the past decade.
The chart reveals that Dogecoin's weekly price has remained within this ascending parallel channel throughout its history. The most recent retest occurred earlier this year when Dogecoin rebounded from the lower line.
As emphasized by Martinez in the chart, the current trend of Dogecoin resembles the trends of the past two bull market cycles. In each bull market, this Crypto experienced an initial rise, then a slight drop, and eventually triggered a true bull market rebound.
In the past few weeks, Dogecoin has been declining, which may indicate that it is currently in a descending staircase phase. According to what happened in previous cycles, Dogecoin may soon begin to rebound and find a peak at the upper end of the ascending channel.
According to how far it is from the upper limit of the channel, the Analyst points out that Dogecoin needs to rise by 6,770% to reach there. It remains to be seen whether the ascending channel will continue to hold, and whether a similar situation as in history will occur this time.
DOGE price
As of writing this article, the price of Dogecoin hovers around $0.31, having decreased by more than 2% in the past seven days.
