TL;DR
- Dogecoin’s price (DOGE) has declined sharply, but historical patterns suggest this drop could precede a significant bull run, according to analyst Ali Martinez.
- Key metrics for the meme coin, including increases in active wallets, transaction volumes, and daily addresses, indicate sustained interest and activity.
Is DOGE’s Recent Correction Part of the Bullish Path?
The largest meme coin in terms of market capitalization has suffered painful losses in the past few weeks following the latest slump of the entire crypto sector. Its price is down 15% over the past two weeks and 33% on a monthly scale, currently trading at around $0.128 (per CoinGecko’s data).
However, the popular analyst Ali Martinez remains unfazed by the negative trends, suggesting that DOGE’s retreat could be “part of its usual behavior before massive bull runs.”
He highlighted several occasions in the past years when the meme coin’s price plunged before spiking exponentially. The first case was in 2017 when DOGE retraced by 40% before exploding by almost 1,000%.
The situation repeated in 2021, with the asset’s valuation tumbling by 56% but later skyrocketing by a whopping 12,000%, reaching an all-time high of almost $0.70.
“Now, in 2024, DOGE has yet again broken out of a descending triangle! It is currently undergoing a 47% price correction, very similar to previous cycles, which could ignite the next DOGE bull run,” Ali Martinez concluded.
Last month, the analyst argued that the meme coin has entered a consolidation phase after previously following a “descending triangle.” He believes its value could tap the $1 milestone if mimicking its historical performance.
These DOGE Metrics Headed North
Despite the declining price as of late, some indicators related to Dogecoin’s ecosystem have jumped significantly. As CryptoPotato reported, non-empty DOGE wallets have surged by 13.8% in the past three months.
Aggregate daily volume where each transaction is larger than $100,000 reached almost $1.5 billion, representing a 12% increase compared to the figure observed on May 1.
Last but not least, daily active addresses witnessed a 20% spike, surpassing the 66,000 mark (per IntoTheBlock’s data).
The post Here’s Why Dogecoin (DOGE) Might be Gearing up for a “Massive Bull Run:” Analyst appeared first on CryptoPotato.
