One analyst has pointed out how Dogecoin is showing a breakout from the Bull Pennant. Here's where the target could be, based on the pattern.
Dogecoin Just Saw a Surge That Broke Above Bull Pennant Resistance
In a new post on X, analyst Ali Martinez talked about a pattern that has formed in the hourly price of Dogecoin recently. The pattern in question is the “Bull Pennant,” a type of Pennant from technical analysis (TA). Pennants form whenever the price of an asset sees a consolidation between two converging trendlines after a strong move. The initial fast move is called the ‘pole’ and the consolidation channel is called the ‘pennant’.
This arrangement is similar to that of Flag patterns, with the main difference between the two being that the Flag consists of parallel consolidation channels, not triangular channels. Like other consolidation patterns in TA, when the price is stuck inside the pennant, it is likely to face resistance above and support below.
Pennants are generally considered to be continuation patterns, so the breakout is likely to occur in the same direction as the previous move (i.e. in the same direction as the pole). When the pole is pointing up, the resulting Pennant is called a Bull Pennant. Likewise, when it is in the opposite direction, it forms what is known as a Bear Pennant.
Here is a chart shared by the analyst showing the Bull Pennant that the 1-hour Dogecoin price has likely been trading within recently:
As can be seen in the chart above, Dogecoin has seen a net consolidation to the downside within the previous Bull Pennant, but now, with the latest surge of the asset, its price has been able to break above the resistance line.
So far, memecoin has not gained much distance on the way, so it is yet to be confirmed whether this is a real breakout or not. If it is indeed the case and the dominant pattern here is a Bull Pennant, then it is likely that DOGE will see a rally of similar size to the extreme of the pattern.
The length of this Bull Pennant-related extreme puts the breakout target at around $0.31. If memecoin can run to this mark, its price would increase by nearly 30% from current levels.
Now we have to wait and see how Dogecoin will develop in the coming days and whether its path will resemble the one outlined by this model.