Dogecoin is preparing for another flag pattern breakout rally to revisit $0.1742 after reversing from $0.1457.
With Bitcoin resurfacing above $69,000 following a brief dip to $67,500 on Sunday, the crypto market is gearing up for a rebound. Amid the increased volatility related to the U.S. presidential elections on November 5, meme tokens like Dogecoin find themselves at a pivotal point.
With the increased speculations, Dogecoin stands on the verge of a bullish continuation with another flag breakout. Will this breakout run push the DOGE prices back to $0.1742?
Dogecoin Price Analysis
Following the bullish flag breakout in the 4-hour chart, Dogecoin’s price skyrocketed from $0.1275 to $0.1797 between October 25 and 29. The bullish rally accounted for a price jump of 40.89% in just four days.
However, the bullish flag rally failed to sustain dominance above $0.1750, resulting in a quick bearish reversal. The reversal rally now creates a falling channel pattern, resulting in a second flag pattern in the 4-hour chart. Additionally, Dogecoin recently dropped to $0.1420, accounting for a 20% pullback.
Nevertheless, Dogecoin is back to challenge the resistance trendline with a bullish reversal from the support trendline and the 38.20% trend-based Fibonacci level. The positive cycle within the second flag pattern accounts for a 6.62% rise.
Currently, Dogecoin is trading at $0.15145 with a 24-hour rise of 0.60%. Despite the ongoing pullback, the weekly returns stand at 6.59%, accompanied by a 40% surge in the past 30 days.
Will Dogecoin give a Breakout Rally?
As the positive cycle within the second flag pattern gains momentum, the MACD and signal lines hint at a positive crossover. Furthermore, the declining trend in the bearish histograms increases the chances of a bullish crossover.
Currently, Dogecoin is standing near the 50% Fibonacci level at near the $0.15 psychological mark. The Doji formation near the overhead trendline warns of an evening star pattern for a negative cycle.
However, the quick V-shaped recovery and the potential for a broader market bull run suggest the possibility of a breakout rally. Based on the Fibonacci level, the trendline breakout could result in a rebound to the 100% Fibonacci level at $0.1742.
On the flip side, the crucial supports for Dogecoin are at $0.1454 and $0.1386.
Analyst Targets a Rebound to $0.162
In a recent X post, technical and on-chain crypto analyst Ali Martinez highlighted a potential recovery run in Dogecoin. The analyst highlighted a buy signal generated over the Dogecoin 4-hour chart using the TD Sequential Indicator.
Based on his analysis, if Dogecoin holds above the $0.141 support level, a potential rebound or rally to $0.162 is possible. Martinez posted this analysis when Dogecoin was trading at $0.1457. Since then, Dogecoin has increased by 3.73%, which increases the possibility of the second flag breakout rally.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
