In the last couple of days, Dogecoin’s price has been pretty stable, hovering just under the $0.45 mark. When we dig into the technical charts, it appears that this stability is forming part of a bullish pennant, which has been shaping up since early November. Essentially, Dogecoin is in the ‘flag’ phase of this pattern, which typically marks a resting period before the price heads upwards again.
Crypto analyst KrissPax sees this as a solid foundation for what he terms as the "next big Doge pump."
Dogecoin’s Path of Steady Growth
Since hitting $0.47 on November 23, Dogecoin’s price has stayed in a pretty tight range. Notably, a key support level at $0.37 has helped prevent the price from slipping further, especially noted during the dip on November 26. KrissPax points out this consolidation period as a positive sign instead of a setback since it has managed to hover above that support line.
When it comes to predicting Dogecoin’s potential price movements, KrissPax identifies that this consolidation might lead to the breakout of the bullish pennant at the upper trendline. He suggests a target price of $1.3 once this breakout occurs. These patterns generally emerge after significant upward movements followed by a settling phase, often forming a triangle shape. If things follow typical trends, reaching $1.30 seems entirely feasible.
What Could Push Dogecoin Up to $1.3?
Currently trading at around $0.419, Dogecoin has witnessed a remarkable 178% rise in just the past month, according to CoinMarketCap. If it manages to break beyond the current trend and hit that $1.30 target, it would mean a massive 210% increase from its current value, setting a new milestone beyond its previous high of $0.7316.
However, reaching such a target isn’t just about the bullish pennant pattern currently showing up on Dogecoin’s charts. External market dynamics also play a crucial role. That said, the current market setup still looks promising for further gains. A significant factor feeding this optimism is the heightened activity on the Dogecoin blockchain, especially from large token holders.
Blockchain analytics firm Santiment reports a notable uptick in activity, highlighting a massive acquisition of 160 million DOGE tokens by Dogecoin ‘whales’ over a mere 48 hours. This heightened demand bodes well for sustaining Dogecoin’s price surge and could potentially aid in surpassing its old records.
Chart from Tradingview.com
Illustrations courtesy of Dall.E, with charts provided by Tradingview.com.
