Dogecoin turned one of the vital common cryptocurrencies within the final bull market after happening a formidable rally again in 2020 after forming a descending triangle. Even now, the meme coin continues to benefit from the spoils of that rally, remaining one of many largest cryptocurrencies within the house. The meme coin has now fashioned an analogous descending angle, however the query is, can it replicate the identical rally as 2020?
Dogecoin Coin Kinds Descending Triangle Comparable To 2021
In a Sunday put up, crypto analyst @ali_charts on Twitter identified that Dogecoin’s chart had fashioned an analogous sample to 1 seen earlier than the meme coin rallied in 2021. This sample known as a descending triangle is often seen proper earlier than a cryptocurrency goes on an enormous rally.
The chart shared by the analyst reveals an eerily related motion sample to DOGE’s value actions within the years main as much as 2021. And as this sample has fashioned nearly completely, the analyst expects that there could possibly be a big rally in the way forward for the digital asset.
DOGE types descending triangle much like the one previous 2021 rally | Supply: Twitter
Now, the final time this occurred, the worth of DOGE exploded by over 2,300%, going from lower than $0.002 to greater than $0.6 in a matter of months. So if the sample holds true on this case prefer it did earlier than, then an distinctive rally could possibly be on the horizon.
As with every evaluation, the crypto analyst factors out that he’s presently ready for affirmation on this development. “I’ll be a sustained month-to-month shut above $0.80 for affirmation,” he mentioned.
Why This May Be Totally different
Though the descending triangle offered by the crypto analyst does look similar to Dogecoin’s value actions earlier than it rallied in 2021, there’s one necessary issue that’s lacking from the present equation and that’s billionaire Elon Musk’s relentless shilling of the cryptocurrency.
DOGE value pumped in 2021 on account of Musk's Twitter posts | Supply: DOGEUSD on Tradingview.com
Again initially of 2021, Dogecoin was an obscure cryptocurrency, till Musk began posting about it on his Twitter account. Musk, who has lots of of thousands and thousands of followers, was arguably the only cause behind DOGE’s 2,300% rally, and if it had been to repeat itself, then one thing akin to Musk’s posts in regards to the meme coin must occur.
For now, many of the billionaire’s time appears to be like to be centered on Twitter, which he purchased in 2022 for $44 billion. Nevertheless, Musk wields extra affect than ever over the crypto market and if he had been to start posting about DOGE as soon as once more on his social media platforms, then it might properly set off one other large rally. In any other case, even a 50% bounce from right here with out the billionaire’s affect could be spectacular.
However, DOGE continues to be sustaining its place as one of many largest cryptocurrencies within the house. It’s up 2.89% within the final day, bringing its market cap above $10.4 billion. This makes it the Eighth-largest cryptocurrency forward of heavy hitters reminiscent of Solana (SOL) and Polygon (MATIC).