Is Dogecoin Price Headed to $0.85? Flag Pattern Hints 12% Rally in Play

Amidst the prevailing bearish sentiment in the cryptocurrency market, the Dogecoin (DOGE) price underwent a correction phase after encountering resistance at the $0.0838 level. In the past two weeks, the memecoin tumbled 13.4% and reached a monthly low of $0.725. However, this pullback in the daily chart shows the formation of a bullish continuation pattern called flag. Here’s how traders could use patterns to enter the next recovery cycle.

Also Read: Elon Musk Says X Will Never Launch A Crypto Token, Bullish For Dogecoin?

Dogecoin Price Daily Chart

• The Dogecoin price above 200-day indicates the long-term trend remains bullish.
• The formation of a flag pattern could trigger a significant upswing in Doge price
• The 24-hour trading volume in the Dogecoin coin is $366.5 Million, indicating a 0.3% gain

Source-Tradingview 

The downward trend in Dogecoin price has found suitable support at the lower trendline of the flag pattern. Amid the rising AUD in the market, the coin price has been hovering above the aforementioned for the past three days.

The daily candles with lower price rejection indicate the buyers are witnessing demand pressure at this support which increases the possibility of a bullish reversal. With an intraday gain of 2.64% the buyers breached immediate resistance of $0.075.

If the candle closes close above the aforementioned resistance the buyers would drive a rally 5% higher to rechallenge the overhead trendline. Until the falling trendline of the pattern is intact, the ongoing correction phase would extend longer.

[converter id=”doge-dogecoin” url=”https://coingape.com/price/converter/doge-to-usd/?amount=1″]

Can DOGE Price Surpass $0.85?

The formation of flag patterns offers a pullback opportunity for traders to enter at discounted prices. A potential bullish breakout from the overhead trendline would signal the end of the correction phase. Under an ideal bullish condition, the Dogecoin price may hit the first target at $0.85, followed by a rally to $0.093.

• Exponential moving average: A potential bearish crossover between the 20-and-50-day EMAs could extend the current downward trend.
• Relative Strength Index: The daily RSI slope above 50% indicates the buyer’s momentum is rising for sustained reversal.