Dogecoin price is showing signs of a rally after a confirmed breakout of the bullish pennant. It was an intriguing breakthrough highlighted by cryptocurrency analyst World of Charts, with the prospect of an raise in the price of Dogecoin above the level of $1.
The break of the bullish pennant sets the stage for forceful upward price action
Dogecoin’s price action over the last six weeks has been characterized by: uneven movement and consolidation below the $0.50 price level. This choppy move, which initially held above $0.4, became unbalanced above that level and eventually pulled into a move between $0.3 and $0.4.
It is worth noting that the consolidation move has caused an intriguing price pattern on the Dogecoin price chart. This pattern consists of lower highs and higher lows, which leads to the formation of a bullish pennant on the 8-hour candlestick chart. AND a bullish pennant is a continuation pattern this often signals a forceful upward price movement after a period of consolidation.
According to cryptocurrency analyst World Of Charts, who shared his technical analysis of Dogecoin’s price action on social media platform X, it appears that the meme coin has now crossed the upper trendline of the bullish pennant. Recent inflows into the cryptocurrency market have seen Dogecoin rebound from the bottom of the bullish pennant trendline.
This resulted in a rally higher to reach the upper trendline, break out from the upper trendline, retest this upper trendline and bounce back again to confirm the breakout. As noted by the analyst, confirmation of the breakout now paves the way for Dogecoin to experience another significant wave of growth.
Could the price of Dogecoin finally break $1?
Given the bullish nature of the bullish pattern, the next step after a breakout to the upside would be another significant rally. Moreover, this may finally be the long-awaited opportunity that is needed Dogecoin is heading towards the $1 level.
The price target projection from World of Charts indicates a price breakout heading towards it will hit its current all-time high of around $0.73 in the next few days. “I expect another strong bull run in the coming days for Dogecoin,” the analyst said.
Such a quick, forceful rally to an all-time high would undoubtedly cause this turn into constant movement upwards provided positive sentiment remains forceful and profit-taking is minimal. This, in turn, could lead to an eventual move above $1, which has long been the goal of the Dogecoin meme coin community.
The first step to reaching $1 would be to recover $0.40 and $0.50. At the time of writing, Dogecoin is trading at $0.3877 and has increased by 3% in the last 24 hours. Interestingly, Dogecoin is up 17% in the last seven days and bulls are now looking to get it back above the $0.4 threshold.
Featured image created with Dall.E, chart from Tradingview.com