Over the past 24 hours, Dogecoin has been on a bullish trend, bouncing back from its low of $0.369 on November 26. At one point, it reached an intraday peak of $0.4577, marking a 24% rise over the course of the week.
What’s noteworthy is that this uptrend has seen Dogecoin surpass a crucial price pattern, hinting at the possibility of another significant rally. Technical analysis now suggests that Dogecoin might be poised for a remarkable 200% surge from its current position.
Dogecoin’s Daily Candle Signals a Breakout
Dogecoin recently closed its daily trading session by breaking above a major resistance level, paving the way for potentially another 200% rally. This breakout occurred as the price pushed past a bullish pennant formation, which has been forming since early November.
This pattern was spotlighted on the social media platform X by Trader Tardigrade, a crypto analyst known for his technical insights. He pointed out that the closure of Dogecoin’s daily candle signified a clear breakout from the bull pennant that has been taking shape over the last month. Typically, this pattern, which involves a consolidation phase following a substantial upward movement, sets the stage for another price increase.
"#Dogecoin daily candle closes with a BREAKOUT candle of the Bullish Pennant 🔥$Doge is finally pushed above the resistance to break the pattern and starts the next surge to the target $1.3 🚀" — Trader Tardigrade (@TATrader_Alan), December 2, 2024
Since November began, Dogecoin has climbed from around $0.143 to over $0.43, marking a 200% increase within just two weeks. Although the crypto has seen some upward movement since then, these gains have been interspersed with corrections. These fluctuations have collectively formed the bullish pennant, setting Dogecoin up for another possible breakout.
The Potential for Another 200% Rally
The confirmed breakout from the bullish pennant pattern has revived expectations of Dogecoin charting new territory. If momentum continues, the cryptocurrency might mirror its early November performance with another 200% rally as December takes off. Projections suggest that Dogecoin could climb beyond its all-time high of $0.7316, even reaching the $1 milestone.
Trader Tardigrade highlights a price target of $1.3, which represents a 200% jump from the breakout point of the pennant. Reaching this goal will demand substantial bullish momentum, requiring Dogecoin to overcome critical resistance levels. The first of these is at $0.457. Following that, the next barrier will be surpassing the current high of 2024, which stands at $0.476.
Presently, Dogecoin is trading at $0.439, showing a 2.77% increase in the past 24 hours.
Source: DOGEUSDT on Tradingview.com
Image crafted using Dall.E, with chart from Tradingview.com
