An analyst has explained how Dogecoin could still have the opportunity for a parabolic career if the support level of this pattern ends up holding.
Dogecoin is trying the lower limit of an ascending channel
In a new one mail In X, analyst Ali Martínez has shared an ascending channel in the long term that the price of 1 week of Dogecoin has been operating inside over the years. The “ascending channel” here refers to a pattern of technical analysis (TA) that is formed when the price of an asset observes the consolidation towards a net advantage between two parallel trend lines.
The upper channel line is drawn by connecting higher highs. In the same way, the lower one joins higher minimums. When the price moves between these two lines, it is likely that resistance at the previous level and support in the second.
In the scenario that the resistance or the support line is broken, the asset is likely to see a continuation of the trend in the direction of rest. This means that the escapes on the channel can be bullish, while the drops underneath can be bassists.
Like the ascending channel, there is also the descending channel, which occurs when the consolidation of the asset occurs towards a net disadvantage. But apart from this fact, the latter works similar to the first.
There is also a third type of parallel channel, where consolidation is exactly sideways. In this case, the trend lines are not only parallel to each other, but also with the time axis.
Now, here is the table shared by Martínez that shows the upward channel that the weekly price of Dogecoin has apparently been caught inside during the last decade:
As is visible in the previous graph, the price of 1 week of Dogecoin has recently observed a strong decrease towards the final result of the ascending channel. Last year, Memecoin also did a new test of the line, which was successful and helped at his price to find a rebound in the rise.
It is possible that the line once again ends up holding to Doge, but it is still too early to say anything, considering that the last re -estimated saw the currency move along the line for a while before the bullish impulse returned.
The last reestimation of the line has arrived after an accident that has shaken assets throughout the cryptocurrency space and instilled fear in investor minds. However, while Dege remains within the ascending channel, not all hopes can be lost for Memecoin holders. As the analyst says, “Dogecoin $ Doge still has the opportunity to become parabolic if the support level of $ 0.16 remains!”
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Dogecoin has been one of the most important currencies in the sector during the past week, since its price has collapsed almost 17%, reducing the level of $ 0.17.
