Dogecoin (DOGE) is rallying again. Analysts are now looking for a second bullish pennant pattern, signaling another potential breakout. This could push the meme coin to $0.90. Analysts note that a second bullish top has appeared on the 2-hour price chart, suggesting that the flag portion of the pattern may be nearing completion.
Historically, these patterns signal a continuation of the previous trend, with breakouts often matching the previous bullish move. Cryptocurrency analyst Trader Tardigrade has predicted a potential breakout from this pattern, predicting that the Dogecoin price could rise to $0.90.
MVRV ratio shows there is plenty of room for growth
The Market Value to Realized Value (MVRV) Ratio Supports the Bullish Outlook. According to Ali Martinez, Dogecoin's MVRV is 45.65%, below the critical level of 78%, which has marked the peak of DOGE's historical bull runs.
Martinez emphasized that previous bull runs have repeatedly ended when the MVRV ratio reached or exceeded 78%. With the current level well below that, Dogecoin appears to have plenty of room to grow further.
A short-term correction is expected before the rally continues.
While the long-term trend remains bullish, Martinez also points to potential risks in the short-term. The TD Sequential indicator has flashed a sell signal on Dogecoin's 4-hour and 12-hour charts, with a similar signal appearing on the daily chart.
However, analysts point to Dogecoin's position within a ten-year ascending price channel to indicate its potential. Martinez notes that DOGE has broken above the lower boundary of this channel, indicating the beginning of an extended bull run.
Based on this channel structure, Dogecoin could aim for the middle boundary at $2.40 or test the upper boundary near $18.
As of press time, Dogecoin is trading at $0.3724, up 1.61% over the past 24 hours and up 32.76% over the past seven days. With a trading volume of $8.3 billion and a circulating supply of 150 billion DOGE, the market cap currently stands at $54.7 billion.
