Dogecoin Breaks Out Of Bull Pennant—What’s The Target?

Source Newsbtc

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.’

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:

Dogecoin Bull Pennant

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.

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.

Dogecoin Price Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Solana Price Forecast: SOL flashes bearish signals, risks double-digit crashSolana (SOL) price shows early signs of a potential breakdown as it trades lower at $165.40 on Monday. SOL is approaching a key support level that could determine its next major move. Technical indicators flash red, and bearish sentiment intensifies, with short positions hitting a monthly high.
Author  FXStreet
May 19, Mon
Solana (SOL) price shows early signs of a potential breakdown as it trades lower at $165.40 on Monday. SOL is approaching a key support level that could determine its next major move. Technical indicators flash red, and bearish sentiment intensifies, with short positions hitting a monthly high.
placeholder
Ethereum Price Faces Pressure: Can It Sustain Its Recent Rally?Ethereum price found support at $2,460 and started a fresh increase. ETH is now struggling and might drop again below the $2,500 support.
Author  NewsBTC
May 27, Tue
Ethereum price found support at $2,460 and started a fresh increase. ETH is now struggling and might drop again below the $2,500 support.
placeholder
Fed June Meeting Preview: The First Dot Plot Since Trump’s Tariffs – What Changes and What Doesn’tMarkets widely expect the Federal Reserve to keep interest rates unchanged, with the federal funds rate likely to remain at 4.25%–4.5% for the fourth consecutive meeting.
Author  TradingKey
19 hours ago
Markets widely expect the Federal Reserve to keep interest rates unchanged, with the federal funds rate likely to remain at 4.25%–4.5% for the fourth consecutive meeting.
placeholder
Avalanche Price Forecast: AVAX set to extend losses as Open Interest drops to one-month lowAvalanche (AVAX) trades in the green by almost 1% at press time on Wednesday, as it tests a crucial support floor that has held for over two months.
Author  FXStreet
19 hours ago
Avalanche (AVAX) trades in the green by almost 1% at press time on Wednesday, as it tests a crucial support floor that has held for over two months.
goTop
quote