Benzinga - An on-chain cryptocurrency analyst Ali Martinez sees Dogecoin (CRYPTO: DOGE) exhibiting price movements that are strikingly similar to its performance in 2020.
What Happened: Martinez said, “The price action of #Dogecoin is showing familiar patterns reminiscent of its 2020 behavior. Back then, $DOGE broke out from a descending triangle, entered a period of consolidation, and then skyrocketed by 28,770%.”
According to the analyst, Dogecoin has escaped a descending triangle and is consolidating. "Currently, #DOGE appears to be mirroring this pattern: having broken out of a descending triangle, it’s now in a consolidation phase, potentially setting the stage for another significant bull run."
The price action of #Dogecoin is showing familiar patterns reminiscent of its 2020 behavior. Back then, $DOGE broke out from a descending triangle, entered a period of consolidation, and then skyrocketed by 28,770%.Currently, #DOGE appears to be mirroring this pattern: having… pic.twitter.com/69yXnlYRJd
— Ali (@ali_charts) February 23, 2024
A descending triangle pattern in technical analysis is a bearish chart formation characterized by a flat bottom and descending top trendlines. It typically emerges during a downtrend and is formed when the price makes consistent lows, indicating that sellers are more aggressive than buyers.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Another cryptocurrency analyst, pseudonymous analyst Crypto Tony, hinted at a potential meme coin rally. Last week, he said on X, “When DOGE pump… Set the sights for Memeseason.”
The transactional activity for Dogecoin has seen a notable increase.
Data from IntoTheBlock, disclosed a spike in large transactions of over $100,000—climbing from 154 to 173 within the last week. The platform also observed that at the beginning of February, Dogecoin has been consistently involved in over one million transactions daily. February 2 was marked by a peak activity day with 1.9 million transactions documented.
The volume of Dogecoin traded in these large transactions reached 12.63 billion DOGE, equating to an approximate $1.09 billion in the past 24 hours.
Price Action: At the time of writing, DOGE was trading at $0.083, down 2.83% over the past 24 hours, as reported by Benzinga Pro.
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