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An analyst has pointed out how Dogecoin is showing a break out of a Bull Pennant. Here’s where the target could lie, based on the pattern. Dogecoin Has Just Seen A Surge Beyond Bull Pennant Resistance
In a new post on X, analyst Ali Martinez has talked about a pattern that has been forming in the hourly price of Dogecoin recently. The pattern in question is a “Bull Pennant,” which is a type of Pennant from technical analysis (TA). A Pennant forms whenever the price of an asset witnesses consolidation between two converging trendlines following a sharp move. The initial rapid move is known as the ‘pole,’ and the consolidation channel as the ‘pennant.’ Related Reading Bitcoin Sets New ATH, But This Metric Says No Overheating Yet 18 hours ago
This arrangement is similar to that seen in Flag patterns, with the main difference between the two being the fact that Flags involve parallel consolidation channels, not triangular ones. Just like other consolidation patterns in TA, when the price is stuck inside the pennant portion, it is likely to face resistance at the upper level and support at the lower one.
Pennants are usually considered continuation patterns, so a breakout is more probable to occur in the same direction as the preceding move (that is, the same orientation as the pole). When the pole is pointing in the up direction, the resulting Pennant is called a Bull Pennant. Similarly, it being in the opposite direction forms what’s known as a Bear Pennant.
Now, here is the chart shared by the analyst that shows the Bull Pennant that the 1-hour Dogecoin price has potentially been trading inside recently: Looks like the price of the coin has climbed beyond the upper line of the pattern most recently | Source: @ali_charts on X
As is visible in the above graph, Dogecoin was witnessing net consolidation toward the downside inside this Bull Pennant earlier, but now, with the latest rally in the asset, its price has managed to find a break above the resistance line.
So far, the memecoin hasn’t gained too much distance over the line, so it’s unconfirmed whether this is a real breakout. In the scenario that it is indeed the case and the governing pattern here is a Bull Pennant, then it’s possible that DOGE could end up seeing a rally of a similar scale as the pole of the pattern.
The length of the pole involved in this Bull Pennant puts the breakout target at around $0.31. If the memecoin can manage a run to this mark, then its price would have gone up by almost 30% from the current level. Related Reading $3.8 Billion In Capital Inflows Behind Ethereum’s Post-Pectra Surge, Data Shows 1 day ago
It now remains to be seen how Dogecoin would develop in the coming days and whether its path would look anything like the one traced by the pattern. DOGE Price
At the time of writing, Dogecoin is trading around $0.239, up around 6% in the past week. The trend in the DOGE price during the past five days | Source: DOGEUSDT on TradingView Featured image from Dall-E, charts from TradingView.com