According to insights from Ali Martinez, Dogecoin is forming a falling wedge pattern, which indicates that a breakout is coming.
If the memecoin escapes this wedge, we might see a jump to $0.15 or higher.
Elon Musk's recent Dogecoin meme on X had a muted impact on the market.
If we see a breakout soon, Dogecoin can begin its ascent to the $1 cycle high that analysts have predicted since March.
The crypto market has been on a crabwalk for months, frustrating investors and failing to restart the bullish momentum from the first quarter.
However, amid the ongoing market action, Dogecoin, the most popular memecoin, could be on the verge of a massive recovery.
According to Ali Martinez, who has been tweeting about the cryptocurrency since March, a pattern is forming on Dogecoin’s charts, and we should be about to see an upward breakout for the coin.
According to Martinez, this breakout could see prices explode upwards from the current price level to as high as $0.15 for starters.
Ali says that the "memecoin king" has been trading inside a classic "falling wedge" pattern since March.
For context, the falling wedge is typically formed by a period of downward consolidation followed by a massive explosion to the upside.
In this pattern, the price of said asset experiences lower lows and lower highs as it gets squeezed into a narrow range.
However, when a breakout does occur, the falling wedge formation often results in massive price rallies.
Falling wedge on Dogecoin
Martinez's analysis in an X post from 9 September shows that a sustained close above the $0.10 resistance could be a major catalyst for a Dogecoin breakout.
According to Ali, if this happens, we could see an upsurge to as high as $0.15, representing a considerable increase from its current price of around $0.1.
Considering how Dogecoin has proven itself to be one of the top cryptocurrencies in terms of investor sentiment and market cap, such a move to the upside would trigger a renewed interest in memecoins and across the rest of the market.
Elon Musk, the CEO of Tesla, is one of the biggest Dogecoin advocates out there.
Back in 2021, Musk was well known for influencing the price action of the memecoin via mere tweets and social media mentions.
The Tesla CEO continues to support the memecoin from time to time with the usual meme and mention. However, there has been a marked decrease in his influence over the market.
For example, on 7 September, he posted an AI-generated image about the cryptocurrency, featuring the words "DOGE: Department of Government Efficiency."
A subtle tongue-in-cheek nod at a possible presidential appointment should Trump win the incoming election in the US.
However, this post had a surprisingly muted effect on the market, and the memecoin did not budge.
Interestingly, even after 82 million views and nearly 723,000 likes, the post failed to garner any momentum for Dogecoin, with the expected “Musk Pump” nowhere to be found.
Interestingly, Elon Musk’s Doegcoin tweet came right around the time Bitcoin got rejected from the $58,000 zone.
In many ways, it is possible that while the “Musk Pump” failed to manifest, it might have helped Dogecoin to remain stable around $0.1 instead of declining along with the rest of the market.
Dogecoin’s price performance
In the charts, we can see the descending wedge that Ali mentioned.
Dogecoin hit the upper trendline of this formation and is attempting to hold its ground.
As shown, the bulls only need a little more momentum from here to ignite a possible breakout and the start of the memecoin's journey towards its $1 cycle-high prediction.
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