Dogecoin (DOGE) has recently exhibited bullish patterns, leading experts to forecast significant price increases. Notably, market analyst Trader Tardigrade has identified the formation of a second bull pennant on the 2-hour price chart, suggesting a potential surge to $0.90.
Understanding the Bull Pennant Pattern
A bull pennant is a technical analysis pattern that indicates a continuation of an existing uptrend. It comprises two main components:
- Flagpole: An initial sharp price increase.
- Pennant: A consolidation phase where the price moves within converging trendlines, forming a symmetrical triangle.
The pattern is considered complete when the price breaks out in the direction of the preceding trend, often leading to further upward movement.
Dogecoin’s First Bull Pennant Formation
Between November 5 and 7, 2024, Dogecoin formed its first bull pennant:
- Flagpole: Price surged from $0.1677 to $0.2187, driven by market optimism following a significant geopolitical event—the victory of Donald Trump in the U.S. elections.
- Pennant: After reaching $0.2187, DOGE retraced to $0.1857, entering a consolidation phase with narrowing price movements.
On November 7, DOGE broke above the pennant’s resistance, initiating a rally that peaked at $0.4389 by November 12—a 139% increase from the consolidation low.
Formation of the Second Bull Pennant
Following the peak at $0.4389, Dogecoin experienced a pullback and began forming a second bull pennant:
- Flagpole: Price rose from $0.30 to $0.4389.
- Pennant: Currently, DOGE is consolidating within a tightening range, indicating the formation of the pennant.
Analyst Trader Tardigrade anticipates that a breakout from this pattern could propel DOGE to $0.90, mirroring the 139% gain observed during the first pennant’s breakout.
Whale Accumulation Supports Bullish Outlook
Supporting this bullish sentiment, recent data indicates significant whale accumulation:
- Accumulation: Whales have acquired 160 million DOGE within a 24-hour period.
- Impact: Such accumulation often precedes price increases, as large investors anticipate future gains.
Current Market Status
As of now, Dogecoin is trading at approximately $0.3752. The completion of the second bull pennant and continued whale accumulation could serve as catalysts for the projected rise to $0.90.
