Dogecoin (DOGE), the meme-inspired cryptocurrency may be set for a major bull run following the current price correction. This projection is based on past cycles of performance of DOGE.
Flashback at Previous Dogecoin Bull Runs
On-chain crypto analyst Ali Martinez, using industry-backed metrics, detailed the recurring pattern in Dogecoin’s price corrections. From the chart shared, the current downtrend might be indicative of a bullish market just around the corner.
Ali’s analysis reveals that Dogecoin’s price movements from 2017 till date, that is, 7 years of data, point to a similar pattern. There is always a breakout from a descending triangle preceding substantial bull runs.
In 2017 for instance, Dogecoin broke out of a descending triangle, then experienced a 40% price correction. The retracement was followed by a remarkable 982% bull run, marking a significant surge in DOGE’s value. Investors who took advantage of the price correction made remarkable profit at the time.
The price retracement of 56% in 2021 was quickly followed by a more impressive bullish run as DOGE skyrocketed by 12,197%. On that occasion, the rapid price increase coincided with intense attention from the crypto community, endorsement by Tesla’s Elon Musk and social media hype.
Current Correction and Potential for a New Bull Run
Now, in 2024, Dogecoin once again is breaking out of a descending triangle and currently undergoing a 47% price correction. This closely mirrors the cycles seen in previous years and this has led many including Ali to speculate that a major bull run is on the horizon for DOGE.
Now, in 2024, #DOGE has yet again broken out of a descending triangle!
It is currently undergoing a 47% price correction, very similar to previous cycles, which could ignite the next $DOGE bull run! pic.twitter.com/ZmuHmvIwei
— Ali (@ali_charts) May 1, 2024
While there is no guarantee that the bull run will hit another 5-figure percentage point as witnessed in 2021, market watchers believe that if history repeats itself, Dogecoin holders could be in for significant gains.
Ali in his analysis maintains that patience may be the key to unlocking profits from these cyclical trends in Dogecoin’s price. Although the current price may be unsettling for some investors, the historical context provides a reason for optimism.
Data from CoinMarketCap shows DOGE is up 4.39% in 24 hours to $0.1289 as it stays green above the $0.124 support level.
