Analyst Predicts Dogecoin is on the Verge of a Significant Breakout After Successfully Predicting Bitcoin’s 2021 Crash
A prominent cryptocurrency analyst who accurately predicted the collapse of Bitcoin in May 2021 is now making a bold call on the meme-inspired cryptocurrency Dogecoin, pointing to a potential substantial price increase as it breaks through a key resistance level.
The pseudonymous trader Dave the Wave, who boasts a massive following of 146,500 on the microblogging platform X (formerly known as Twitter), suggested in a new post the memecoin could soon see a massive price rally, highlighting a bullish ascending triangle pattern forming on Dogecoin’s daily chart.
If the digital asset successfully breaks above this key resistance level, the analyst argues that it could signal a substantial price increase.
An ascending triangle, it’s worth noting, is a type of chart pattern that technical analysts use to predict price movements. It consists of a horizontal line that connects the high points of the price and a rising line that connects the low points of the price. The two lines form a triangle shape that is used to look for price breakouts, either up or down.
Ascending triangles are usually seen as continuation patterns, meaning that they indicate that the price will continue in the same direction as the trend before the triangle was formed.
According to the analyst, Dogecoin may also be consolidating within a broader symmetrical triangle pattern. A breakout from this formation could propel the memecoin’s price towards the $0.20 range, and Dave the Wave even suggested that Dogecoin could potentially reach its all-time high of $0.73 during this cycle.
The meme-inspired cryptocurrency ,as reported, earlier this month saw its “largest spike in active addresses in the past six months,” as the number of addresses active on its blockchain recently surged to 84,306.
That’s according to data from on-chain analytics firm Santiment, first shared by popular cryptocurrency analyst Ali Martinez, who also noted that the Dogecoin network is “experiencing significant growth.”
Per Martinez, over the past week there’s “been a 72% increase in new DOGE addresses,” with the cryptocurrency’s network adding over 19,600 addresses in a single day.
Featured image via Unsplash.
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