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Will a flag breakout rally in Dogecoin result in a 25% surge to the $0.175 mark as the meme coin market remains volatile?
The cryptocurrency market has increased by 1.40% in the past 24 hours, now totaling $2.32 trillion. Within this environment, meme coins are experiencing mixed results. While Dogecoin, the largest meme coin, has seen a 3.95% increase in the last day, many other top meme coins are in decline.
Nevertheless, the meme coin segment has a market cap of $55.50 billion and a 24-hour trading volume of $5.38 billion. Currently, Dogecoin maintains a market cap of $21.03 billion and is the eighth biggest cryptocurrency.
Will this uptrend propel Dogecoin toward the $1 target as it attempts a bullish comeback? Let’s take a closer look.
Dogecoin Reversal Run
After a bearish weekend, Dogecoin rebounded from a recent 4-day low of $0.12759, following a 7.38% drop on Friday. The positive momentum resulted in two consecutive bullish candles, with increases of 4.53% and 4.95%. At present, Dogecoin is trading at $0.14384, forming an intraday Doji.
While this quick reversal mitigates the bearish engulfing candle from Friday, it momentarily halts the bullish trend continuation. However, the 4-hour chart suggests a potential bullish trend extension as the underlying dynamics shift in the shorter time frame.
Ali Martinez Expects 25% Surge in Dogecoin
In a recent analysis shared by Ali Martinez, Dogecoin is exhibiting a bullish flag pattern. This pattern began with a bullish reversal from the psychological level of $0.10299, peaking at $0.14966—an increase of nearly 50%.
According to Martinez’s analysis, a bullish breakout above $0.143 could trigger a 25% surge in Dogecoin prices to $0.175.
Currently, the DOGE price has surpassed the overhead resistance trendline, supporting the bullish trend and challenging the $0.1438 or the 38.20% Fibonacci level. The bullish flag breakout rally teases a morning star pattern as it prepares for an extension.
Additionally, with a V-shaped reversal in play, the 38.20% Fibonacci level serves as a neckline, and a bullish breakout could further energize the Dogecoin rally. Supporting Martinez’s target, the trend-based Fibonacci analysis highlights the 100% Fibonacci level at $0.17022 as a potential target.