Dogecoin became one of the most popular cryptocurrencies in the last bull market after going on an impressive rally back in 2020 after forming a descending triangle. Even now, the meme coin continues to enjoy the spoils of that rally, remaining one of the largest cryptocurrencies in the space. The meme coin has now formed a similar descending angle, but the question is, can it replicate the same rally as 2020?
Dogecoin Coin Forms Descending Triangle Similar To 2021
In a Sunday post, crypto analyst @ali_charts on Twitter pointed out that Dogecoin’s chart had formed a similar pattern to one seen before the meme coin rallied in 2021. This pattern referred to as a descending triangle is usually seen right before a cryptocurrency goes on a massive rally.
The chart shared by the analyst shows an eerily similar movement pattern to DOGE’s price movements in the years leading up to 2021. And as this pattern has formed almost perfectly, the analyst expects that there could be a significant rally in the future of the digital asset.
Now, the last time this happened, the price of DOGE exploded by over 2,300%, going from less than $0.002 to more than $0.6 in a matter of months. So if the pattern holds true in this case like it did before, then an exceptional rally could be on the horizon.
As with any analysis, the crypto analyst points out that he is currently waiting for confirmation on this trend. “I’ll be looking at a sustained monthly close above $0.80 for confirmation,” he said.
Why This Could Be Different
Although the descending triangle presented by the crypto analyst does look very similar to Dogecoin’s price movements before it rallied in 2021, there is one important factor that is missing from the current equation and that is billionaire Elon Musk’s relentless shilling of the cryptocurrency.
Back at the start of 2021, Dogecoin was an obscure cryptocurrency, until Musk started posting about it on his Twitter account. Musk, who has hundreds of millions of followers, was arguably the sole reason behind DOGE’s 2,300% rally, and if it were to repeat itself, then something akin to Musk’s posts about the meme coin would have to happen.
For now, most of the billionaire’s time looks to be focused on Twitter, which he bought in 2022 for $44 billion. However, Musk wields more influence than ever over the crypto market and if he were to begin posting about DOGE once again on his social media platforms, then it could well trigger another massive rally. Otherwise, even a 50% jump from here without the billionaire’s influence would be impressive.
Nevertheless, DOGE is still maintaining its position as one of the largest cryptocurrencies in the space. It’s up 2.89% in the last day, bringing its market cap above $10.4 billion. This makes it the 8th-largest cryptocurrency ahead of heavy hitters such as Solana (SOL) and Polygon (MATIC).