According to a top crypto strategist and trader, Dogecoin (DOGE) has the potential to rekindle a volatility reminiscent of the big price boom in April.
Justin Bennett told his Twitter followers that the current price action of the leading prank crypto reflects a technical pattern seen in DOGE six months ago, before it launched a massive 13-fold rally.
“DOGE is doing what it does best. The last two breakouts resulted in gains of 1000% or more. The most recent round of consolidation took three times longer than the model before the April breakout of 1200 percent. A crypto to watch if BTC behaves well.”
According to the trader’s chart, DOGE is displaying a large ascending triangle formation, a bullish pattern that indicates an asset’s uptrend is continuing. If DOGE follows Bennett’s scenario, the 10th largest crypto-asset could go up to $3. This increase indicates a potential upside move of 1150 percent from its current price of $0.23.
Bennett also notes that he is bullish on DOGE in the short term as well, suggesting that the 10th largest cryptoasset may be ready to break through its broad cross-resistance.
“DOGE is returning to the resistance.
Consolidation below resistance is ________(bullish).”
$DOGE is moving back to resistance.
Consolidation below resistance is _______.#DOGE #dogcoin pic.twitter.com/nbP2p1gidf
— Justin Bennett (@JustinBennettFX) October 9, 2021
Another crypto analyst with the same idea, Altcoin Psycho, emphasizes that if an asset trades close to a resistance area in a bull cycle, it is likely to continue upwards.
“Consolidation under resistance in an uptrend means bullish.
“Consolidation under resistance in uptrend means bullish.
“Consolidation under resistance in uptrend means bullish.
“Consolidation under resistance in an uptrend means bullish.
“Consolidation under resistance in uptrend-“
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.