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.
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:
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.
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.
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.
