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Dogecoin (DOGE) prices surged by over 17% in the past week, in line with a bullish altcoin performance, pushing the total crypto market cap to $4 trillion. The prominent altcoin is now facing major resistance at the $0.25 price level, the result of which bears significant implications for the current positive momentum. Popular market analyst Ali Martinez has weighed in on this situation, highlighting a chart pattern that favours a massive price breakout in the DOGE market.
In an X post on July 18, Ali Martinez presented a bullish technical analysis of the DOGE daily chart, hinting that the altcoin holds significant potential for a sustained rally in the short term. Martinez’s post shows that DOGE price movement over the six months has carved a textbook double bottom pattern, i.e., a technical setup that typically signals a positive trend reversal.
The double bottom pattern is a classic bullish formation, featuring two roughly equal lows separated by a peak, i.e, the neckline in between. In the chart above, this pattern is noticed with DOGE forming lows near $0.13-$0.15 in April and June, separated by a rally toward $0.25 in May, representing the pattern’s neckline.
Notably, the crypto market surge over the last month has pushed DOGE towards $0.24 again, thereby completing the W shape of the double bottom pattern. However, to validate the bullish potential of this chart pattern, market bulls must hold a decisive breakout above $0.25 resistance, which will typically be interpreted as a strong buy signal, projecting further gains ahead.
This is a highly possible scenario as the steep recovery from the June lows shows increasing bullish momentum with buyers stepping in with higher volume, pushing price action upward in a nearly uninterrupted fashion. According to Ali Martinez, a successful clearance of the $0.25 neckline paves DOGE’s way for a rally to $0.42, hinting at a potential 82.3% gain on present market prices.
On the other hand, another consecutive rejection around $0.25 price region would dent the current bullish momentum and possibly initiate a return to support levels around the $0.13-$0.15 region.
Related Reading: Ethereum Road To $10,000: Replay Of May’s Playbook Predicts Another Breakout
At the time of writing, DOGE trades at $0.25 following a 7.84% increase in the past 24 hours. Meanwhile, the asset’s daily trading volume is up by 108.5% suggesting suggesting a surge in market participation and growing bullish momentum, as traders continuously position themselves for a prolonged uptrend.
With a market cap of $34.95 billion, DOGE retains its position as the ninth-largest cryptocurrency and largest memecoin in the world.
