Dogecoin (DOGE) is once again making waves in the cryptocurrency market, with analysts keeping a close eye on the formation of a second bull pennant pattern. This pattern suggests a potential breakout that could propel the meme coin to $0.90, following a recent surge in its value.
The emergence of the second bull peak on the 2-hour price chart is a positive sign for Dogecoin, indicating that the flag portion of the pattern may soon be completed. Historically, these patterns have signaled a continuation of the previous trend, with breakouts often aligning with prior bullish movements. Crypto analyst Trader Tardigrade has predicted a potential breakout from this pattern, projecting Dogecoin’s price to reach $0.90.
One key metric supporting the bullish outlook for Dogecoin is the Market Value to Realized Value (MVRV) ratio. Currently standing at 45.65%, the MVRV ratio for Dogecoin is below the crucial level of 78%, which has historically marked the peak of DOGE rallies. This suggests that Dogecoin still has room for growth before reaching overbought levels, according to analyst Ali Martinez.
Martinez also highlighted potential short-term risks for Dogecoin, as the TD Sequential indicator has shown sell signals on the 4-hour, 12-hour, and daily charts. Despite these warnings, Dogecoin’s position within a ten-year ascending price channel indicates strong potential for future growth. Martinez noted that DOGE has breached the lower boundary of this channel, signaling the beginning of a prolonged rally.
Based on the channel’s structure, Dogecoin could target the middle boundary at $2.40 or test the upper boundary near $18 in the long run. As of the latest data, Dogecoin is trading at $0.3724, with a 1.61% increase in the past 24 hours and a 32.76% gain over the last seven days. With a trading volume of $8.3 billion and a circulating supply of 150 billion DOGE, Dogecoin’s market capitalization currently stands at $54.7 billion.
It is important to note that the information provided in this article is for informational and educational purposes only. Coin Edition does not provide financial advice, and readers are advised to exercise caution before making any investment decisions related to cryptocurrencies.