Dogecoin’s price is showing promising signs of a potential rally, as traders eye key technical patterns. A recent analysis highlights a bullish flag formation, a pattern often associated with upward price momentum.
As interest in Dogecoin grows, investors watch for a potential breakout, which could lead to notable gains. The latest market sentiment around DOGE has been buoyant, with some suggesting that it may soon test new highs.
What you'll learn 👉
Dogecoin Bullish Flag Formation Spotted
ZAYK Charts recently tweeted an 8-hour DOGE chart, identifying a bullish flag formation. This continuation pattern typically suggests a temporary pause in an upward trend before prices surge again. The chart reveals a flagpole formed by a sharp price rise and a flag structure consisting of lower highs and lower lows.
The resistance line at the upper boundary of the channel is pivotal. A breakout above this point could signal a continuation of DOGE’s previous bullish trend. The tweet emphasized that a breakout might result in a “massive bullish wave.”
Key Levels to Watch
The analysis outlined essential support and resistance levels for Dogecoin. The lower boundary of the channel, near $0.34, acts as a support zone. Meanwhile, the upper boundary at approximately $0.38 represents the breakout level.
If DOGE breaches this resistance, the projected price target aligns with the flagpole’s length. This measurement points to a potential rally toward $0.60, representing a 60% increase. Data from CoinGecko shows DOGE trading at $0.3599, with a 5% price increase over the last 24 hours.
Read also: Here’s Why the Fartcoin Price Is Pumping
Market Sentiment and Risks
ZAYK Charts noted that the bullish flag indicates positive market sentiment among traders. However, broader market conditions, such as Bitcoin’s performance, could influence DOGE’s trajectory. Watching for a confirmed breakout with strong volume to validate the pattern will be crucial.
A breakdown below the $0.34 support level could invalidate the bullish setup, potentially leading to a correction. Dogecoin’s 8-hour chart offers an optimistic outlook, with the bullish flag hinting at a potential rally. As DOGE approaches the key $0.38 resistance, traders should prepare for either a breakout or potential downside risks.
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