An analyst has pointed out how Dogecoin has entered into a zone that kicked off major bull runs for the memecoin in the past.
The upper line of the pattern tracks successive higher highs in the price, while the lower one connects higher lows. The former is considered to be a source of resistance and the latter that of support.
Though, while this may be so, Dogecoin has dipped under the lower line of its long-term Ascending Channel a few times over the years, with the latest instance coming this year.
That said, in each of these occurrences, the asset found support at a trendline a bit below the Ascending Channel’s lower level. The analyst has described the shaded area between the two lines as a “historically strong buy zone.”
From the chart, it’s apparent that multiple major bull runs in DOGE found their start after the price retested this zone. At present, the token is trading inside the area, with recent attempts to re-enter the Ascending Channel ending up in failure.
It now remains to be seen whether a breakout into the channel would follow for Dogecoin and potentially kick off another rally, or if this cycle would break the pattern.
As displayed in the above chart, the 1-hour price of Pudgy Penguins was sliding down inside the Descending Channel during the last two weeks, but it has just found a surge above its resistance line. “PENGU targets $0.041 after breaking out of a descending channel!” says the analyst.
At the time of writing, Dogecoin is trading around $0.21, up almost 4% over the last 24 hours.
