Dogecoin is back in focus. Crypto analyst Ali Martinez has identified a repeating fractal pattern on DOGE’s monthly chart, drawing comparisons to two previous bull cycles that produced extraordinary returns.
Martinez shared his findings on X, noting that the pattern mirrors setups seen in the 2017-18 and 2021-22 cycles. The first delivered gains exceeding 9,000%. The second surged 30,693%. Based on this structure, Martinez projected a potential rally toward $10.
“Once you see this Dogecoin fractal, you can’t unsee it,” he stated. The claim has stirred debate across the crypto community.
What the Fractal Pattern Shows
Fractals are price reversal patterns built around five candles or bars. A bullish fractal forms when a low point sits flanked by two lower bars on each side. Traders use them to identify potential turning points in price momentum.
Martinez argues that DOGE’s monthly chart currently reflects this exact formation, one that preceded massive rallies twice before. The pattern’s repetition across different market cycles is what makes it compelling to some analysts.
However, not everyone is convinced. X user Noble acknowledged the analysis’s visual appeal but challenged its reliability. Without accompanying volume data, Noble argued, the fractal remains unverified. Volume is a critical component in confirming breakout signals. A pattern without volume support can be misleading, particularly in volatile assets like Dogecoin.
Martinez did not provide a specific timeline for the projected move to $10. At the current price of $0.09428, reaching that target would represent a gain of over 10,000%.
Technical Indicators Send Mixed Signals
The broader technical picture for Dogecoin is divided. Several key indicators point in opposite directions, making a definitive short-term outlook difficult to establish.
On the bearish side, the Bull Bear Power indicator has flashed a “Sell” signal on TradingView. This tool measures the relative strength of buyers and sellers in the market. A sell reading suggests sellers currently hold the upper hand.
Four major moving averages reinforce this caution. The 10-day, 30-day, 50-day, and 100-day moving averages all show bearish readings. Moving averages smooth out price data over time and help identify trend direction. When multiple timeframes align bearishly, it typically signals sustained downward pressure.
The one bullish outlier is the Moving Average Convergence Divergence indicator, known as MACD. It compares the 12-period and 26-period exponential moving averages to gauge momentum shifts. The MACD has issued a “Buy” signal for DOGE. This suggests underlying momentum could be building, even if current price action remains weak.
Source: https://coinpaper.com/15550/doge-price-prediction-analyst-spots-bullish-fractal-as-mixed-signals-cloud-dogecoin-outlook
