An analyst pointed out that Dogecoin is showing signs of breaking out of the bullish triangle flag pattern. According to the pattern, the target price may be around here.
Dogecoin has just broken through the bullish triangle flag resistance level.
In a new article on platform X, analyst Ali Martinez discussed a pattern recently formed in Dogecoin's hourly price. This pattern is known as a 'bullish triangle flag', which is a type of triangle flag in technical analysis (TA). When the asset price experiences significant volatility and then consolidates between two converging trend lines, a triangle flag is formed. The initial rapid volatility is referred to as the 'pole', and the consolidation channel is called the 'triangle flag'.
This arrangement is similar to flag patterns, with the main difference being that flag patterns contain parallel consolidation channels rather than triangular channels. Like other consolidation patterns in technical analysis, when the price is within the triangle flag area, it is likely to face resistance above and support below.
Triangle flags are generally considered continuation patterns, so breakouts are more likely to occur in the same direction as the previous trend (i.e., in the same direction as the pole). When the pole points upward, the triangle flag formed is called a bullish triangle flag. Similarly, if the pole points in the opposite direction, a bearish triangle flag is formed.
Now, this is the chart shared by the analyst, showing that Dogecoin's price may have recently been trading within a bullish triangle flag on an hourly basis:
As shown in the image above, earlier, Dogecoin experienced a downward consolidation within a bullish triangle flag, but now, with the asset's latest rebound, its price has successfully broken through the resistance line.
So far, the memecoin's increase has not exceeded this line, making it uncertain whether this is a true breakout. If this is indeed the case, and the dominant pattern is a bullish triangle flag, then Dogecoin may eventually experience a rebound similar in scale to the pole of the pattern.
The length of the bullish triangle flag pole determines that the breakout target is around $0.31. If the memecoin can successfully break through this target, its price will rise nearly 30% from the current level.
It remains to be seen how Dogecoin will develop in the coming days and whether its path will resemble that traced by the pattern.
DOGE Price
At the time of writing, Dogecoin's trading price is approximately $0.239, having risen about 6% over the past week.
