A closely watched crypto strategist believes that top memecoin Dogecoin (DOGE) will officially enter bull market territory if it manages to break through two resistance levels.
Analyst Ali Martinez tells his 31,200 followers on social media platform X that DOGE is trading within a major triangle pattern.
According to the trader, DOGE could potentially post a new all-time high if it were to convincingly break out of the technical formation.
“Dogecoin is approaching the top of this multi-year descending triangle formation.
A weekly candlestick closing above $0.0835 could trigger the start of a new DOGE bull run, possibly towards $1. Still, we should be careful of the support at $0.0482 as any sign of weakness around this level could lead to a new yearly low.”
Looking at the trader’s chart, it appears that the analyst sees two major resistances for DOGE. The first appears to be the triangle’s multi-year diagonal resistance and the second appears to be the horizontal resistance at $0.083.
At the time of writing, DOGE is trading at $0.059, down over 91% from the all-time high of $0.731 it reached in May 2021.
Looking at the top cryptocurrencies by market cap, the trader says he is keeping a close eye on Bitcoin’s (BTC) realized price hot supply metric. tracks the average purchase price of all coins that have not moved for a week to six months.
According to Martinez, a new bull run will occur for BTC if it rises above the current value of the on-chain metric.
“The realized price indicator of Bitcoin’s hot supply suggests that the bull run will only reignite if BTC secures a sustainable close above $28,233!”
At the time of writing, Bitcoin is trading at $26,932.
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Generated image: DALLE-2