Recently, cryptocurrency analyst Ali Martinez wrote that Dogecoin may be preparing for a significant rise. Several indicators point to the likelihood of upward movement. Under favorable circumstances, the growth could reach the $0.177 mark, especially if an important resistance level is breached, where deals involving 30 billion $DOGE were previously executed.
Martinez highlighted key reasons that, in his opinion, could ensure parabolic growth for Dogecoin.
According to the analyst, last month the well-known Tom DeMark Sequential indicator gave a buy signal on Dogecoin's monthly chart, indicating a potential trend reversal.
Ali Martinez believes that the current situation with Dogecoin is very similar to August 2022, when the cryptocurrency formed an inverted hammer, accompanied by a buy signal from the Tom DeMark Sequential, followed by a doji candlestick. This was followed by a 145% monthly increase.
Currently, $DOGE is showing a similar picture: an inverted hammer, a buy signal from TD, and a forming candlestick. If history repeats, the next monthly candlestick could trigger a serious surge.
The current technical situation remains positive, and it appears that large holders are preparing for a rise. Over the past week, wealthy investors have accumulated over 430 million $DOGE.
Since June 25, Dogecoin has been trading sideways between $0.068 and $0.08. The current price of the meme cryptocurrency is $0.069, and a "death cross" recently appeared on the hourly chart.
If Dogecoin encounters a trend reversal, the key resistance level will be the $0.0813 mark, where deals involving more than 30 billion $DOGE were previously executed.
On June 23, Dogecoin faced a sharp rejection from this key level, and it should be monitored in anticipation of the next Dogecoin rally. A sustained close above $0.0813 could signal further growth, with the next resistance being at $0.177, according to Ali Martinez.
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