Analyst Ali Martinez suggests Dogecoin (DOGE) could be primed for a significant upward move after spending a year trading within a falling wedge pattern on its weekly chart, with historical data showing the memecoin has repeatedly broken out of similar formations in bullish fashion.
What Happened: Year-Long Pattern Nears Key Test
Martinez posted his analysis on X, identifying a falling wedge structure that has contained Dogecoin's price action since early 2024. The token recently retraced to the pattern's lower trendline, testing support at a level that has historically preceded upward breakouts.
A falling wedge forms when price moves between two downward-sloping, converging trendlines.
Technical analysts typically view these patterns as either bullish continuations or reversals.
Martinez highlighted several previous falling wedges in Dogecoin's chart history. Each resolved with an upward breakout.
The current formation is the largest wedge the token has encountered.
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Why It Matters: Historical Precedent Suggests Upside
"Dogecoin DOGE tends to respect wedge structures, and a breakout from this one could be powerful," Martinez wrote.
The analyst's observation carries weight given Dogecoin's track record with similar chart patterns. Whether the current support level holds remains the central question for traders watching the memecoin.
A confirmed breakout would signal sustained upward momentum, according to standard technical analysis interpretation.
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