Dogecoin’s Bullish Pennant: What Traders Should Know About the $1.35 Projection

• Dogecoin is nearing the apex of a bullish pennant, a technical pattern signaling potential upward momentum.
• A breakout above key resistance levels could propel Dogecoin to the $1.35 target projected by the pennant.
• Market sentiment and external factors will play a pivotal role in confirming Dogecoin’s bullish breakout.

Dogecoin, the popular cryptocurrency often associated with meme culture, is currently exhibiting a significant technical pattern that could signal a major price movement. We had discussions with traders and analysts who pointed out that there is a bullish pennant on the Doge chart and it is close to a breakout. Should the breakout happen as expected, Dogecoin may observe its price jump to a predicted target of $1.35.

Technical Overview: The Bullish Pennant

A bullish pennant is a continuation pattern that is usually seen when a stock has experienced a big run up in price and then takes a breather in a sideways trading range bounded by two converging lines. This formation usually concludes with a rupture in the direction of the earlier trend. For Dogecoin, it is visible that the pattern repeats a sharp increase earlier this year, which means that the series of moves that result in consolidation may indicate the preparation for further growth.

#Dogecoin Bullish Pennant stays there 🔥$Doge comes to the verge of the Pennant, looking to BREAKOUT soon.
Target: $1.35 🚀 pic.twitter.com/8cckOegKBI

— Trader Tardigrade (@TATrader_Alan) December 6, 2024

Currently, Dogecoin price is trading close to the peak of the pennant which is always a sign of high volatility due to compression of price. Seeing a breakout past the upper trend line would offer support to the bullish thesis, an initial upside target of $1.35, which is the pattern’s measured move.

Key Drivers Behind the Movement

Fundamental sentiment in the cryptocurrency market has been on the rise across the sector over the past weeks. Owing to fundamental reasons such as activities by institutional investors coupled by upbeat overall risk assets globally. Also, Dogecoin has remained relevant to other retail investors, thus enhancing its liquidity and trading volume condition even further.

It however should be noted that markets do change over time as well as within a particular time frame. There are expected support and resistance areas at $0.50 and there is expected resistance at $0.75; however, there may also be dips near these zones, and new factors, for instance in the form of policy shifts or shifts in market tone, may trigger fluctuations.

Source