The meme-inspired cryptocurrency Dogecoin ($DOGE) has formed a chart pattern that suggests the price of the cryptocurrency may surge over 23,000%, akin to a rise it experienced last year when the same pattern was formed on its chart.

The chart pattern was first spotted by popular cryptocurrency analyst Ali Martinez, who noted on social media that on Dogecoin’s weekly chart a descending triangle has formed. The last time Dogecoin encountered this pattern, it catapulted with an almost unfathomable rally of 23,200%. This revelation has stoked speculation about whether Dogecoin could reproduce a similarly meteoric rise.

Five years ago, Dogecoin capitalized on a significant uptrend, reaching its then-all-time high of $0.0187 in January 2018. However, the cryptocurrency underwent a downward trend that lasted over two years following that rally.

Dogecoin’s fall persisted until the dawn of 2021, when it showed hints of a breakout. As CryptoGlobe reported at the time, DOGE’s price explosion was preceded by a surge in search interest for the cryptocurrency, partly triggered by calls to help it move to $1 and by influencers commenting on the situation.

According to Martinez, DOGE’s price explosion was over 23,200% from the cycle’s bottom. After reaching its peak, however, DOGE saw another round of declines and has been seeing its value fall over time, to now trade at $0.078, far below its $0.73 all-time high.

Interestingly, Martinez’s post on the chart pattern coincided with a notable accumulation trend among large holders of the meme-inspired cryptocurrency, colloquially known as whales. The analyst highlighted in a subsequent tweet that these high-level investors, who hold between 1 billion to 10 billion DOGE, have amassed 3 billion coins, equivalent to $225 million, over the past three weeks.

The increasing accumulation seems to fuel the possibility that whales are also betting on a breakout from the descending triangle. However, the degree to which DOGE could rally post-breakout remains an open question, with some investors citing the cryptocurrency’s growing circulating supply as a potential barrier to a significant surge.

Earlier this week, the cryptocurrency’s price moved up over 10% after Tesla and SpaceX CEO Elon Musk’s Twitter bio changed after Twitter’s rebranding to “X”. Musk’s profile location now displays an “X” and a “D”, with the “X” alluding to Twitter’s new identity and the “D” widely interpreted as a nod to Dogecoin, a cryptocurrency Musk has openly championed for the past few years.

Featured image via Unsplash.