TL;DR
- Price Surge: Dogecoin rose almost 4% in 24 hours, trading near $0.21 and reentering a key buy zone.
- Historical Pattern: The memecoin has tapped a decade-long ascending channel buy zone before past bull runs.
- Analyst Forecast: Ali Martinez predicts a breakout into the channel could ignite a major rally or signal a breakdown.
Dogecoin surged nearly 4% in the last 24 hours, trading close to $0.21, and has landed in a historically significant buy zone. The memecoin’s price action has attracted renewed attention after entering the lower bounds of a decade-long ascending channel pattern. As traders search for reliable signals, one analyst suggests that this technical setup could be the spark behind the next major rally.
Historical Ascending Channel
In the last ten years, Dogecoin’s weekly price has followed an upward channel marked by two parallel trendlines that slope upwards. The upper boundary has marked successive highs, while the lower line has linked rising lows. While Dogecoin occasionally dipped below the channel’s lower limit, each retreat was brief.
Buyers consistently reentered at support levels, cementing this zone’s reputation as a launch pad for rallies. At the time of writing, DOGE continues its upward momentum, trading at $0.22, increasing more than 5%.
Buy Zone Retests Sparked Past Runs
Analyst Ali Martinez highlights the shaded region between the channel’s lower boundary and an adjacent support line as a historically strong buy zone. His chart indicates multiple occasions when Dogecoin tested this area before exploding upward. Major bull runs in 2018, 2021, and late 2023 all originated after the memecoin found footing in this precise price band.
Dogecoin $DOGE is trading within a historically strong buy zone, which has repeatedly triggered major bull runs in past cycles! pic.twitter.com/oYZF8BVKmE
— Ali (@ali_charts) August 7, 2025
Current Price Action and Stakes
At present, Dogecoin trades inside this potent buy zone, with recent upsweeps toward the channel’s lower trendline ending in modest pullbacks. Current market behavior rests at a crossroads. A breakout back into the ascending channel could catalyze significant upside momentum. Conversely, a decisive breakdown might challenge the long-standing pattern and usher in a deeper consolidation phase. Trading volume has ticked up slightly, signaling significantly renewed investor interest in the memecoin market overall.
Analyst Outlook and Possible Scenarios
Martinez envisions two clear scenarios ahead. In one path, renewed buyer interest propels Dogecoin above the lower channel line, triggering a fresh bull run. In the other, failure to breach resistance could signal the end of the decade-long pattern. Memecoin traders will closely monitor volume, trendline tests, and broader market conditions to gauge which scenario materializes. Broader market sentiment in the crypto sector and upcoming macroeconomic data releases will also play a key role in determining direction.
