Dogecoin has been one of the most prominent currencies in the cryptocurrency market over the past few weeks. In the last 34 days, Dogecoin has risen by 210%, climbing from $0.13 to over $0.41. The momentum for this surge comes from the excitement surrounding the establishment of the Department of Government Efficiency (DOGE), which was created by Dogecoin advocate Elon Musk under the leadership of the incoming U.S. President Donald Trump.
However, the upward momentum has stabilized, and DOGE has experienced sideways movement over the past 16 days. Nevertheless, the daily DOGE/USD chart still shows a highly bullish outlook. Legendary trader Peter Brandt, combined with observations from a cryptocurrency analyst known as @Kultigin83, has highlighted the ‘continuation flag’ on the DOGE/USD chart, predicting a potential target price of $0.66.
Is this the next price target for Dogecoin?
@Kultigin83 commented on X, stating: “Mr. Peter helped us, and I also want to help him (a small suggestion from a student); this formation is called an ascending flag.” In response, Peter Brandt replied: “Yes, if completed, this would indeed be seen as a continuation flag.”
The continuation flag pattern is a classic chart pattern known for its bullish implications. It typically appears during a strong upward trend, where the price briefly consolidates or slightly declines within a parallel or slightly expanding channel. This pattern is crucial as it indicates that despite the temporary pause, the main bullish momentum remains intact.
In the case of Dogecoin, the observed pattern has followed a significant upward trend, with the price rising sharply from below $0.19 to over $0.39 after breaking out of the head and shoulders pattern, forming the ‘pole’ of the flag. This pole is a key component as it represents the initial surge before the consolidation phase. After this surge, Dogecoin's price action began to consolidate, oscillating between $0.340 and $0.48, forming the body of the flag.
The method of deriving price targets from the flag pattern includes measuring the length of the pole—approximately $0.20 in this case (from about $0.19 to $0.39). This measurement is then applied to the potential breakout point, which for DOGE seems to form around $0.50. By adding the height of the pole to the breakout price, the projected target is set at $0.70. The analysis provided by @Kultigin83 sets a slightly conservative target of $0.66.
If Dogecoin can maintain its momentum and break through the upper limit of its continuation flag, then a target of at least $0.66 seems to be the next reasonable price objective. This technical pattern is supported by the expertise of Peter Brandt, providing a bullish outlook for Dogecoin, indicating that the cryptocurrency's upward trend is not yet over.
As of the time of publication, DOGE is trading at $0.41.
