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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.’
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:
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.
Featured image from Dall-E, charts from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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