Dogecoin became one of the most popular cryptocurrencies in the recent bull market after it went on an impressive rally in 2020 after forming a descending triangle. Even now, the meme continues to enjoy the spoils of that rally, remaining one of the biggest cryptocurrencies in the space. The meme coin has now formed a similar downward angle, but the question is, can it repeat the same rally as 2020?
Dogecoin coin forms descending triangle similar to 2021
On a Sunday POSTcrypto analyst @ali_charts on Twitter noted that the Dogecoin chart had formed a pattern similar to the 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 a strange movement pattern similar to the price movements of DOGE in the years leading up to 2021. And since this pattern is almost perfectly formed, the analyst expects that there could be a significant increase in the future of the digital asset.
DOGE forms descending triangle similar to the one preceding 2021 rally | Source: Twitter
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 as before, then an incredible rally could be on the horizon.
As with any analysis, the crypto analyst notes that he is currently awaiting confirmation of this trend. “I’ll be looking at a solid monthly close above $0.80 for confirmation,” he said.
Why could this be any different?
Although the descending triangle presented by the crypto analyst looks very similar to Dogecoin’s price movements before the 2021 rally, there is one important factor missing from the current equation and that is billionaire Elon Musk’s relentless shilling for the cryptocurrency.
DOGE price pumped in 2021 as a result of Musk's Twitter posts | Source: DOGEUSD on Tradingview.com
In early 2021, Dogecoin was an unknown cryptocurrency until Musk started tweeting about it on his Twitter account. Musk, who has hundreds of millions of followers, was arguably the single reason behind DOGE’s 2,300% rally, and if it were to happen again, then something similar to Musk’s meme coin posts would have to happen.
For now, most of the billionaire’s time seems to be focused on Twitter, which he bought in 2022 for $44 billion. However, Musk has more influence than ever over the crypto market and if he were to start posting about DOGE again on his social media platforms then it could cause another massive rally. Otherwise, even a 50% jump from here without the billionaire influence would be impressive.
However, DOGE is still maintaining its position as one of the biggest cryptocurrencies in the space. It has risen 2.89% in the last day, taking its market cap above $10.4 billion. This makes it the 8th largest cryptocurrency ahead of heavy hitters like Solana (SOL) and Polygon (MATIC).