Dogecoin is gearing up for another flag pattern breakout rally from the $0.1457 pullback to $0.1742.
The cryptocurrency market is gearing up for a rebound as Bitcoin reclaims $69,000 after briefly dropping to $67,500 on Sunday. Amid heightened volatility ahead of the Nov. 5 U.S. presidential election, meme tokens like Dogecoin are at a critical juncture.
Dogecoin Price Analysis
Following a bullish flag breakout in the 4-hour chart, the price of Dogecoin surged from $0.1275 to $0.1797 between October 25 and 29. The bullish rebound resulted in a 40.89% price increase in just four days.
However, the bullish flag rally failed to maintain dominance above $0.1750, resulting in a swift bearish reversal. The reversal rally has now formed a descending channel pattern, resulting in a second flag pattern on the 4-hour chart. Moreover, Dogecoin recently dropped to $0.1420, a 20% correction.
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Nonetheless, Dogecoin staged a bullish reversal from the support trendline and the 38.20% trend Fibonacci level to re-challenge the resistance trendline. The positive loop in the second flag pattern accounts for 6.62% of the gain.
Dogecoin is currently trading at $0.15145, with a 24-hour gain of 0.60%. Despite the ongoing pullback, the weekly return is still 6.59%, and it has risen 40% in the past 30 days.
Will Dogecoin see a breakout rally?
As the positive cycle momentum in the second flag pattern increases, the MACD and signal line are hinting at a positive crossover. Moreover, the downtrend in the bearish histogram increases the likelihood of a bullish crossover.
Currently, Dogecoin is trading near the 50% Fibonacci level and close to the psychological mark of $0.15. A doji pattern near the upper trendline warns of an impending evening star pattern in the negative cycle.
However, the quick V-shaped recovery and broader market bull potential suggest that a breakout rally is highly likely. According to the Fibonacci levels, a trendline breakout could result in a rally to the 100% Fibonacci level at $0.1742.
On the other hand, Dogecoin’s key supports are found at $0.1454 and $0.1386.
Expected to rebound to $0.162
Dogecoin potential recovery trend, buy signal generated using the TD Sequential indicator on the Dogecoin 4-hour chart.
If Dogecoin holds the $0.141 support, a rally or bounce to $0.162 is possible. Dogecoin is up 3.73%, which increases the possibility of a second flag breakout rally.
