Dogecoin Shows Bullish Pennant Formation, Potential Breakout by Saturday
Crypto analyst Kevin (@Kev_Capital_TA) has identified a bullish pennant formation in the 4-hour Dogecoin / USD price chart, indicating a significant price movement could occur by Saturday. In a post on X, Kevin comments that Dogecoin is forming a defined potential bullish pennant with multiple touch points and ample consolidation time.
Dogecoin Price Breakout By Saturday?
The chart shared by Kevin illustrates a bull pennant pattern, which signifies a pause in an uptrend followed by potential continuation. This pattern features converging trend lines encapsulating a period of price consolidation after a strong upward movement.
In this case, the pennant is marked by converging yellow trend lines, indicating decreasing volatility. Dogecoin is trading around $0.38 within this pennant structure. Kevin suggests a critical breakout could happen “by Saturday at the latest.”
A breakout occurs when the price moves beyond the trend lines of a formation, signaling potential trend continuation or reversal. Given the preceding bullish momentum, an upward breakout is anticipated. However, Kevin acknowledges market unpredictability: “Up or down,” he notes.
Key support and resistance levels are highlighted on the chart. The upper resistance is around $0.54, which may be tested if an upward breakout occurs. Immediate support levels are located around $0.33 and $0.2950, critical for downward price movements.
Kevin emphasizes the stochastic Relative Strength Index (RSI) on the daily chart, stating: “The stochastic RSI is a phenomenal momentum indicator in strong trends in either direction. The daily RSI is almost reset for Dogecoin and probably needs another week to fully reset. Once it does, I expect the next leg to begin.”
The stochastic RSI compares the level of the RSI to its high-low range over a set period, providing insights into potential overbought or oversold conditions. A reset in the daily RSI indicates previous overbought conditions have eased, potentially paving the way for significant price movement.
Kevin remarks on the current consolidation phase: “The longer Dogecoin consolidates, the bigger the next leg will be. In my opinion, the next leg will be the biggest leg of the DOGE bull run and will indicate where it might top out for the cycle.”
At press time, DOGE traded at $0.39.
