The cryptocurrency market is in a strong uptrend following Donald Trump's victory in the US election on November 5, with Bitcoin (BTC) hitting a record high of $93,474. Along with Bitcoin's price surge, Dogecoin (DOGE), one of the most popular memecoins, has surged more than 100% in the past 30 days. This momentum was further fueled by Trump's announcement that Elon Musk and Vivek Ramaswamy will lead the newly created "Department of Government Efficiency" (DOGE).

However, after reaching a local high of $0.44, Dogecoin has entered a consolidation phase and is currently trading around $0.3613. This has raised questions about whether DOGE is ready for another breakout.

Bull Flag Pattern: A Positive Sign?

Dogecoin's recent price action has formed a bull flag continuation pattern, a technical setup that is often considered a bullish indicator. Here's what makes the bull flag notable:

1. Flagpole Pattern: DOGE's sharp rally from $0.18 to $0.44 exhibits a flagpole pattern, indicating a strong initial bullish move fueled by high momentum.

2. Consolidation Phase (Flag): After the surge, DOGE entered a consolidation phase, marked by downward parallel trend lines. This phase usually represents a pause before the continuation of the uptrend.

3. Resistance: DOGE is currently testing the upper boundary of the flag around $0.37-$0.38. A breakout above this level could trigger the next bullish wave.

4. Potential Upside Target: If DOGE breaks out of the bullish flag pattern, the measured move suggests a price target of around $0.54, calculated by adding the flagpole height ($0.26) to the breakout level ($0.18 - $0.43).

5. Key indicators:

  • Relative Strength Index (RSI): RSI at 52.92 is in the neutral zone, suggesting DOGE could rise further before reaching overbought territory.

  • Support Zone: The lower boundary of the flag, around $0.34, acts as an important support level.

What can be expected ahead?

Dogecoin’s bullish flag pattern is sending out strong bullish signals. If DOGE manages to break above $0.38, it could be primed for another rally, with a potential target of $0.54. As always, traders should closely monitor price action and use appropriate risk management.