Dogecoin Could Rally to $4, Says Analyst Citing Historical Pattern

Crypto analyst Ali (@ali_charts) recently shared insights on Dogecoin 's trajectory, showcasing how the cryptocurrency has remained within an ascending channel on a TradingView chart since early 2014. Despite the boom-and-bust cycles often experienced by altcoins, the chart indicates Dogecoin's decade-long adherence to this upward path. Ali highlights that Dogecoin's position above this channel continues to keep the prospect of a rally towards $4 open.

The analyzed channel is defined by two bold lines marking Dogecoin's price range boundaries, intersected by dashed mid-channel lines. Historically, Dogecoin traded below $0.00017 in 2014 and dropped to $0.00134 by March 2020, aligning with the chart's 0% Fibonacci reference point.

From there, a consistent uptrend emerged, punctuated by notable peaks in 2017-2018 and mid-2019, culminating in a historical rally in 2021 when Dogecoin soared to about $0.73905. After descending, the price consolidated around $0.06654, a level marked by the 0.618 Fibonacci retracement, before ascending above the 0.786 Fibonacci level at approximately $0.19183.

Currently, Dogecoin trades close to $0.25, resting above the channel's lower boundary yet under the crucial dashed lower trendline that frequently anticipates breakout movements. Notably, Dogecoin faced resistance around this trendline in both April and December of 2024, near specific price levels. Should current correction efforts prove successful in retesting previous highs around $0.23, it could signal readiness for a further climb. Historically, when Dogecoin interacts with these dashed lines, it preludes significant price movements.

Breaching the dashed line near $0.50 may ignite the next major upswing. Ali's analysis reinforces that Dogecoin remains structurally sound within this long-term trend, suggesting future price increases hold potential.

The chart incorporates Fibonacci analysis, highlighting pivotal levels in Dogecoin's history. The 0.618 retracement level around $0.06654 notably captured the 2022 bear market's low, while the 0.786 Fibonacci marker near $0.19183 served as a consolidation pivot. Beyond the 1.0 extension where 2021's high approximately $0.73905 occurred, several Fibonacci extension targets exist: 1.272 near $4.10, 1.414 around $10.04, and 1.618 near $36.32.

These provide a technical framework for the most optimistic outlooks, albeit becoming increasingly speculative as multiple barriers must be overcome.

Should Dogecoin maintain its position above the channel's top boundary, it appears poised for further expansion. The chart suggests that sustaining this position supports a bullish framework. Conversely, a decline below $0.19 could push Dogecoin towards the channel's lower boundary, potentially undermining its bullish trajectory. At present, Dogecoin trades at $0.26791, suggesting resilience in the face of recent market dynamics.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.