Crypto analyst Kevin (@Kev_Capital_TA) has identified a bullish pennant formation on the 4-hour Dogecoin/USD price chart, indicating that there could be significant price movement this coming Saturday. In post on Something to keep an eye on.

Dogecoin price break by Saturday?

The chart shared by Kevin illustrates a bull pennant pattern. A bull pennant typically indicates a break in a dominant uptrend followed by a potential continuation of that trend. This pattern is characterized by converging trend lines that include a period of price consolidation after a mighty upward move.

In the case of Dogecoin, the pennant is marked by converging yellow trend lines, indicating decreasing volatility and a consolidation phase. Within this pennant structure, memecoin is trading around $0.38. Kevin’s analysis suggests this critical breakout could occur “by Saturday at the latest.”

In technical analysis terms, a breakout occurs when price breaks above specific pattern trend lines, signaling a potential trend continuation or reversal. Given the bullish momentum preceding the pennant formation, a breakout to the upside is often predicted. However, Kevin maintains a cautious stance, admitting that the market is unpredictable: “Up or down,” he notes.

The chart also has several horizontal lines representing key support and resistance levels. The upper resistance is located around USD 0.54, which can be tested in the event of an upward break. Conversely, immediate support levels are around $0.33 and $0.2950, ​​which would be critical in the event of a price collapse.

Kevin also highlights the role of the stochastic relative strength index (RSI) on the daily chart. He states: “The Stochastic RSI is a phenomenal indicator of momentum when there are strong trends in both directions. The daily RSI for Dogecoin is almost reset and probably needs another week or a few days to fully reset. Once that happens, I expect the next phase to begin.”

The Stochastic RSI is a technical momentum indicator that compares the RSI level to its high and low range over a set period, providing insight into potential overbought or oversold conditions. The reset of the daily RSI suggests that previous overbought conditions have eased, potentially paving the way for another significant price move.

Further highlighting the potential impact of the current consolidation phase, Kevin adds: “The longer Dogecoin consolidates, the larger the next installment will be. In my opinion, the next stage will be the biggest stage of the DOGE bull run and will give us a good idea of ​​where we will peak in the cycle.

At the time of publication, DOGE was trading at $0.39.

Featured image created with DALL.E, chart from TradingView.com