Dogecoin Surges 11%: Is This Parallel Channel Resistance Next?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. An analyst has highlighted how Dogecoin crossed a Parallel Channel’s midline after its latest rally and is now heading toward its resistance level. Dogecoin Could Face Resistance At $0.1172 Next In a new post on X, analyst Ali Martinez has talked about a Parallel Channel forming in the 12-hour price of Dogecoin. A “ Parallel Channel ” is a technical analysis (TA) pattern that forms whenever an asset observes a phase of consolidation between two parallel trendlines. Related Reading Bitcoin $90,000 Predictions Surge Across Social Media—Contrarian Signal? 21 hours ago Like with other consolidation channels in TA, the upper level of a Parallel Channel tends to be a source of resistance for the coin, while the lower one that of support. A break out of either of these bounds can signal a continuation of trend in that direction. That is, a surge above the channel can be a bullish sign, while a drop under it a bearish one. Parallel Channels can be classified into a few different types based on how the channel is oriented with respect to the graph axes. Channels with a positive slope are known as Ascending Channels, while those pointing down are called Descending Channels. In the context of the current topic, the simplest case is the one of relevance: a Parallel Channel that’s parallel to the time-axis. Such a pattern corresponds to a phase of true sideways movement in the asset. Now, here is the chart shared by Martinez that shows the Parallel Channel that the 12-hour price of Dogecoin has been stuck inside for the last couple of months: The price of the coin seems to have broken past the midline of the channel | Source: @alicharts on X As displayed in the above graph, the 12-hour Dogecoin price was earlier trading inside the lower half of the Parallel Channel, with the pattern’s midline situated at $0.1018 acting as a barrier for the memecoin. The 11% price jump for the past week, however, has meant that DOGE has finally broken past this resistance. The next relevant level in the channel is located at $0.1172, corresponding to the top level. It now remains to be seen whether the Dogecoin will perform a retest of this level in the near future or not. Related Reading Bitcoin Market Returning To Risk-On? Flow Pulse Surges 136% From March Lows 1 day ago While Dogecoin has seen some bullish price action recently, fellow altcoin Solana has headed down instead. A consequence of this decline has been that SOL has dropped below the support level of a TA pattern, as the analyst has pointed out in another X post . The asset appears to have dropped below the lower trendline | Source: @alicharts on X From the chart, it’s visible that Solana was earlier trading inside a channel enclosed by two converging trendlines approaching each other at a roughly equal and opposite angle. Such a pattern is called a Symmetrical Triangle. Breakouts from this type of channel become likely as the asset approaches the apex, which is what appears to have happened with SOL this time as well. DOGE Price Dogecoin has surged to the $0.1064 level following its latest rally. The trend in the price of the coin over the last five days | Source: DOGEUSDT on TradingView Featured image from Dall-E, chart from TradingView.com