Crypto analyst and trader ZAYK Charts has identified a bullish pennant pattern for Dogecoin (DOGE) on the 4-hour timeframe. The analyst shared an analysis via X, suggesting DOGE could reach $0.50 upon a successful breakout from its current consolidation phase.
The chart analysis reveals a distinct bullish pennant structure, characterized by converging trendlines following an upward price movement. DOGE trades between a descending resistance line near $0.40 and an ascending support level around $0.38, forming a symmetrical triangle pattern.
$DOGE Bullish Pennant Formation in 4H TimeframeIncase of Breakout,Next Target will be $0.5#Dogecoin pic.twitter.com/okpywf165f
— ZAYK Charts (@ZAYKCharts) November 22, 2024
The consolidation phase demonstrates steady buying pressure at lower levels, while sellers maintain control at the upper boundary. This price action creates a compression zone, setting up potential momentum for an upward breakout.
Price Targets and Support Levels
ZAYK Charts’ analysis points to $0.50 as the primary target, calculated using the flagpole height measurement method. This projection represents a 30% increase from the current resistance level of $0.40.
The chart identifies $0.38 as a key support zone, backed by previous price action. This level serves as a foundation for potential upward movements and acts as a safety net during price corrections.
Read also: Litecoin (LTC) Price Edges Out of Multi-Year Triangle—What Could Be Next?
Market Structure and Volume Analysis
The 4-hour chart displays a clear market structure with defined trading ranges. Trading volume has decreased during the consolidation phase, which aligns with typical pennant formation characteristics.
The pattern suggests accumulation at current levels, with traders positioning themselves for a potential breakout. At press time, Dogecoin trades at $0.3966. The meme coin has risen by 2.18% in the last day and a 9.73% price increase in the past week. Moreover, the daily trading volume is $9,829,070,908 according to CoinGecko data.
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