The analyst explained how Dogecoin’s drop to the lower level of the parallel channel could trigger a noticeable rally if the support level holds.

Dogecoin may have been following a parallel channel recently

In the fresh one post on X, analyst Ali Martinez talked about a long-term pattern in the monthly price chart of Dogecoin. The pattern in question is a “parallel channel” in technical analysis (TA), which forms whenever an asset sees consolidation between two parallel trend lines.

The upper level of the formation is usually a source of resistance, while the lower level is support. Together, the lines keep the price trapped in the region bounded by them. In the event of a breakout, the asset may see a sustained move towards a breakout. This means that a rise above the channel can be a bullish signal and a fall below it is a bearish signal.

Here is a chart shared by an analyst that shows the parallel channel where Dogecoin has potentially been traded over the last few years on a monthly basis:

As shown in the chart above, Dogecoin’s 1-month price retested the upper level of this parallel channel in slow 2024, but Memecoin was ultimately rejected. For most of 2025, the mid-channel line remained tight for DOGE, preventing further bearish moves. However, the level finally ran out in the last quarter of the year and the coin has since seen a prolonged decline.

Currently, the asset is still a noticeable distance from the lower level of the formation, but if its trajectory of the last few months continues in the near future, it is possible that it could close the gap. “I want to buy the dip at $0.0537,” the analyst noted. “If this low holds, we could see a 200% upside back to the mid-range at $0.16.”

Time will tell whether Dogecoin will test this parallel channel support level again in the coming months, and if it does, whether the cryptocurrency will bottom out.

In the brief term, a possible bullish signal has appeared on the weekly asset price chart, as Martinez noted in another X post.

From the chart, we can see that the Tom Demark (TD) Sequential indicator gave a reversal signal for Dogecoin after nine red candles, indicating that the downtrend may be exhausting. However, within two days of the signal, the value of the asset fell even further.

DOGA Price

Dogecoin fell to $0.090 after continuing its bearish momentum over the weekend.