An Analyst Claims Dogecoin Could See a Rally – “Similar to the One in 2022…”

Crypto analyst Ali Martinez argued that technical signals indicating a strong uptrend are emerging on Dogecoin’s ($DOGE) monthly chart. According to Martinez, the current outlook resembles the price structure seen in 2022, when $DOGE gained 145% in value in a single month.

Martinez stated that the Tom DeMark Sequential indicator generated a buy signal on Dogecoin’s monthly chart last month, indicating a potential trend reversal.

According to the analyst, $DOGE’s current technical outlook largely coincides with the pattern seen in August 2022. At that time, Dogecoin formed an inverted hammer pattern and a doji candle following a TD buy signal, which was followed by a 145% monthly increase.

$DOGE’s monthly chart now shows an inverted hammer pattern, a buy signal, and a doji candle in the formation stage. Martinez noted that if the past scenario is repeated, a significant price movement could begin with the next monthly candle.

On-chain data also shows that large investors are taking positions with the expectation of an uptrend. According to information shared by Martinez, whales have accumulated more than 430 million $DOGE in the last week. These purchases are considered to support the technical outlook.

The critical resistance level to watch for Dogecoin is $0.0813. According to the analyst, a sustained close above this level, where more than 30 billion $DOGE have previously been traded, could signal a continuation of the uptrend.

According to Martinez, if the $0.0813 level is surpassed, the next resistance indicated by the URPD data will be $0.177.