Dogecoin appears ready for another rally pattern, potentially pushing back up to 0.1742 USD after rebounding from a recent low of 0.1457 USD.
With Bitcoin recovering above 69,000 USD after a recent drop to 67,500 USD, the crypto market braces for a possible rebound. Amid heightened volatility linked to the U.S. presidential election on November 5, meme tokens like #Dogecoin find themselves at a crucial juncture.
As speculative interest rises, Dogecoin may be on the verge of a bullish breakout, potentially following another rally flag pattern. Could this move send DOGE’s price back to 0.1742 USD?
Dogecoin Price Analysis
Dogecoin saw a significant jump between October 25 and October 29, with prices rising from 0.1275 USD to 0.1797 USD, a 40.89% increase within just four days.
However, the rally faced resistance at 0.1750 USD, prompting a rapid bearish pullback. The price is now forming a descending channel pattern, signaling a potential second flag setup. Recently, Dogecoin dipped to 0.1420 USD, reflecting a 20% drop.
Now, Dogecoin is once again challenging the resistance trendline, with a bullish reversal emerging from the support trendline and the 38.20% Fibonacci level. This positive cycle within the second flag pattern has led to a 6.62% rise.
Currently, Dogecoin trades at 0.15145 USD, reflecting a 24-hour increase of 0.60%. Despite ongoing declines, weekly gains stand at 6.59%, with a 40% increase over the last 30 days.
Will Dogecoin Break Out Again?
As the positive cycle within the second flag pattern gains momentum, MACD and signal lines suggest a positive crossover. Additionally, the declining trend in bearish histograms improves the chances for an upward breakout.
Dogecoin is currently near the 50% Fibonacci level, around the psychological 0.15 USD mark. A Doji formation near the upper trendline warns of a possible evening star pattern, indicating a negative cycle.
However, the V-shaped recovery and broader market bullish sentiment suggest potential for a breakout rally. A breakout of the trendline could see a rise toward the 100% Fibonacci level at 0.1742 USD.
Conversely, key support levels for Dogecoin are at 0.1454 USD and 0.1386 USD.
Analyst Predicts Rally Toward 0.162 USD
In a recent post on X, technical and on-chain crypto analyst Ali Martinez highlighted Dogecoin’s potential recovery. The analyst pointed to a buy signal generated on Dogecoin’s 4-hour chart using the TD Sequential indicator.
According to his analysis, if Dogecoin holds above the 0.141 USD support level, a potential rally toward 0.162 USD could be possible. Martinez posted this analysis when Dogecoin was trading at 0.1457 USD. Since then, Dogecoin has risen by 3.73%, increasing the likelihood of a second flag breakout rally.
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