The fall of Dogecoin (DOGE) by more than 30% over the past month caused a "shock" among holders of the asset, but the famous crypto analyst Ali Martinez hastened to calm the community, explaining the upcoming growth of the largest meme coin.
In his tweet on X, Martinez explained that the current correction in the price of Dogecoin is a normal behavior of the coin before a bullish rise.
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The analyst draws his followers' attention to the recurring cyclical dynamics of DOGE in 2017 and 2021, when the price of the meme coin showed the same corrections before significant growth.
To support his opinion, Martinez presented charts showing that Dogecoin broke out of descending triangles in previous cycles: in 2017 it fell by 40% and in 2021 by 56%, before rising by 982% and 12,197%, respectively.
The same, according to the analyst, is happening in the current year. A 47% correction in the price of DOGE will lead to a bullish rally that will see the value of Dogecoin reach or exceed $6.
This observation suggests a recurring pattern in the price movement of Dogecoin over the years and emphasizes the importance of patience for investors. If the price of DOGE follows the same trend suggested by Martinez, we could see DOGE exceed $6.0 in the next round of cryptocurrencies.
The markets' increasing interest in meme coins and DOGE's move to the popular Robinhood trading platform are also positive factors for the asset's continued growth.
The latest data from Santiment shows that the number of non-empty Dogecoin wallets has increased by 13.8% over the past three months. This indicates the steady activity of Dogecoin users, highlighting the continued appeal of the meme coin.
Beside that, the growing number of active wallets confirms the continued interest in the dog-themed cryptocurrency, even as the market goes through a consolidation phase. This suggests that despite the lack of strong price movement, the Dogecoin community remains active and may even be growing.
At the time of writing, DOGE is trading at $0.1314, up 5.7% in the last 24 hours.
Also read: All nine Bitcoin ETFs in the US experienced outflows