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Dogecoin is preparing for another flag pattern breakout rally to revisit $0.1742 after reversing from $0.1457.
With Bitcoin resurfacing above $69,000 following a brief dip to $67,500 on Sunday, the crypto market is gearing up for a rebound. Amid the increased volatility related to the U.S. presidential elections on November 5, meme tokens like Dogecoin find themselves at a pivotal point.
With the increased speculations, Dogecoin stands on the verge of a bullish continuation with another flag breakout. Will this breakout run push the DOGE prices back to $0.1742?
Dogecoin Price Analysis
Following the bullish flag breakout in the 4-hour chart, Dogecoin’s price skyrocketed from $0.1275 to $0.1797 between October 25 and 29. The bullish rally accounted for a price jump of 40.89% in just four days.
However, the bullish flag rally failed to sustain dominance above $0.1750, resulting in a quick bearish reversal. The reversal rally now creates a falling channel pattern, resulting in a second flag pattern in the 4-hour chart. Additionally, Dogecoin recently dropped to $0.1420, accounting for a 20% pullback.
Nevertheless, Dogecoin is back to challenge the resistance trendline with a bullish reversal from the support trendline and the 38.20% trend-based Fibonacci level. The positive cycle within the second flag pattern accounts for a 6.62% rise.
Currently, Dogecoin is trading at $0.15145 with a 24-hour rise of 0.60%. Despite the ongoing pullback, the weekly returns stand at 6.59%, accompanied by a 40% surge in the past 30 days.
Will Dogecoin give a Breakout Rally?
As the positive cycle within the second flag pattern gains momentum, the MACD and signal lines hint at a positive crossover. Furthermore, the declining trend in the bearish histograms increases the chances of a bullish crossover.
Currently, Dogecoin is standing near the 50% Fibonacci level at near the $0.15 psychological mark. The Doji formation near the overhead trendline warns of an evening star pattern for a negative cycle.
However, the quick V-shaped recovery and the potential for a broader market bull run suggest the possibility of a breakout rally. Based on the Fibonacci level, the trendline breakout could result in a rebound to the 100% Fibonacci level at $0.1742.
On the flip side, the crucial supports for Dogecoin are at $0.1454 and $0.1386.
Analyst Targets a Rebound to $0.162
In a recent X post, technical and on-chain crypto analyst Ali Martinez highlighted a potential recovery run in Dogecoin. The analyst highlighted a buy signal generated over the Dogecoin 4-hour chart using the TD Sequential Indicator.
Based on his analysis, if Dogecoin holds above the $0.141 support level, a potential rebound or rally to $0.162 is possible. Martinez posted this analysis when Dogecoin was trading at $0.1457. Since then, Dogecoin has increased by 3.73%, which increases the possibility of the second flag breakout rally.