Dogecoin looks poised to reach record high on persistent DOGE bull pennant breakout

Is Dogecoin Charging Towards Half a Dollar Valuation? This Indicator Shows So
Image by alektas from Pixabay

YEREVAN (CoinChapter.com) — Dogecoin (DOGE) is having a wow time at the market.

The meme cryptocurrency, launched as a joke in 2013 to make fun of speculative frenzy around Bitcoin, has now become a part of the same mania itself. It rose by more than 1,500% in the first five months of 2021, lost over 60% of those gains to bottom out in July, and then rebounded impressively with an aim to reclaim its previous record high of $0.74.

DOGE hinted at logging its first major step towards its all-time high earlier this week. In detail, the cryptocurrency broke above the resistance trendline of what appeared to be a Bull Pennant, rising 13.70% Tuesday to $0.2756. It kept holding its gains entering Thursday, insomuch that the price broke above the previous weekly high to hit $0.34.

With the upside move, DOGE hinted at extending its breakout above the Bull Pennant structure, with its new target possibly being an all-time high.

A circa 250% DOGE rally ahead?

Notably, Bull Pennants are bullish continuation patterns that tends to send the price in the direction of its prior uptrend, called flagpole. That happens when the price breaks above the Pennant’s upper trendline, prompting traders to eye breakout target at length equal to the Flagpole’s height.

Dogecoin’s recent price rally has had DOGE break above its Bull Pennant. It now tests the structure’s upper trendline as support, hoping that a decisive continuation move upward would have it target an all-time high ahead.

DOGE/USDT daily price chart featuring Bull Pennant
DOGE/USDT daily price chart featuring Bull Pennant. Source: TradingView.com

That said, DOGE has the potential to rise towards $0.80-1.00 ahead, since its flagpole’s height is nearly $0.66.

On the other hand, if Dogecoin slips back below the Pennant’s upper trendline, it would risk validating the Flag setup, as shown in the chart above (dashed line). That would risk sending DOGE prices below $0.10.

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