Dogecoin could face two pullbacks as historical trends suggest
Dogecoin's (CRYPTO:DOGE) recent surge past key resistance levels has fueled optimism among investors.
However, according to crypto analyst Ali Martinez, the current uptrend may face notable corrections, similar to past cycles.
Martinez highlighted patterns from previous market cycles, indicating that Dogecoin experienced significant pullbacks during major rallies.
In the 2017 bull run, Dogecoin witnessed two corrections of around 40% and 84% amidst a 9,470% surge.
Similarly, during the 2021 rally, where Dogecoin soared over 30,700%, it saw two pullbacks of 46% and 53%.
These historical patterns suggest that corrections could be part of the ongoing trend as Dogecoin advances.
Martinez remarked, “Now, as DOGE seems to be entering another parabolic run, remember that corrections are part of the journey.”
Such declines could act as consolidation phases, enabling the digital asset to gather strength for further rallies.
Despite potential pullbacks, Martinez observed a 45% increase might be imminent if Dogecoin maintains its $0.35 support level.
This scenario could trigger a climb toward the $0.56 mark, driven by the formation of a bullish flag pattern.
Retail sentiment for Dogecoin continues to outpace that for Bitcoin.
A recent poll by Martinez showed that 83% of respondents favored investing in Dogecoin over Bitcoin (CRYPTO:BTC), emphasising its appeal as a cost-effective alternative with profit potential.
Martinez noted, “Retail investors are leaning toward DOGE over Bitcoin,” citing affordability and endorsements from figures like Elon Musk as contributing factors.
Martinez advised that patience and conviction are key for investors navigating Dogecoin’s journey.
He emphasised that understanding the market's inherent volatility and recognising historical trends can aid in preparing for both potential corrections and long-term gains.
At the time of reporting, the Dogecoin price was $0.3712.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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