Dogecoin may rise to ATH of $0.74 if the closing price of the month is above this level, analysts said.

An analyst explained that Dogecoin's monthly closing above this level could pave the way for the memecoin to test the all-time high (ATH). Dogecoin is trading around the lower end of an ascending channel. In a new post on X, analyst Ali Martinez shared a technical analysis model (TA) that Dogecoin's monthly price has recently shown. The model being referred to is "Ascending Channel", which is a type of parallel channel. Parallel channels form when the price of an asset consolidates between two parallel trend lines. The upper line has the potential to provide resistance in the future, while the lower line supports. A breakout of either of these levels could imply a continuation of the trend in that direction. Parallel channels can have three types. The most basic type involves trend lines parallel to the time axis. This case occurs when consolidation happens horizontally. The other two types form when assets consolidate at an angle. When this occurs in an upward direction, the formed channel is called an Uptrend Channel. Similarly, a downward consolidation leads to a Downtrend Channel. In the context of the current topic, the first type of these two is of interest. Since the Ascending Channel indicates a phase of net accumulation prices trending upwards, its upper line connects higher peaks and its lower line connects higher lows. Below is the chart shared by the analyst, showing that the Ascending Channel indicates that the price of Dogecoin has been stuck inside it for several years.

As can be seen in the chart above, the price of Dogecoin has fallen below the lower level of this long-term ascending channel over the past month and seems to be sliding below it. If the memecoin is currently experiencing a continuous downward move, then a downward breakout may be confirmed. However, in the event that it can recover back above the lower level of the channel once again, its path may once again become the path outlined by the model. The lowest point of the ascending channel is not the only level that the asset is very close to breaking; there is also the Fibonacci retracement level of 0.786. The Fibonacci retracement levels are based on the ratios derived from the famous Fibonacci sequence. The Fibonacci retracement level of 0.786 from the chart is around the price level of $0.20. The next key level, the 1.000 retracement level, corresponds to the ATH of Dogecoin, which is approximately $0.74. As Martinez explained, If Dogecoin $DOGE can maintain a monthly closing level above $0.20, it could pave the way for a rally toward the all-time high of $0.74. Such a breakout would signal strong bullish momentum and could attract the interest of investors.