The Dogecoin price has done just that taking bullish action in the past 24 hours on a continued rally from the November 26 low of $0.369. With the Dogecoin price recently trading at an intraday high of $0.4577, this translates to a 24% increase in seven days.
Notably, this rally has caused the Dogecoin price to move to the positive side of a price pattern, indicating that another major rally is in store. Interestingly, technical analysis suggests that Dogecoin price is on track to stage another 200% rally from here.
Dogecoin price Daily Candle closes with a breakout
Dogecoin’s daily candle closed with a breakout above a key resistance level, allowing the price to rise 200% again from now on. This breakout of resistance mainly occurred as a boost above a bullish pennant formation on the Dogecoin price chart, which has been in play since early November.
This chart pattern was highlighted on social media platform X by crypto analyst Trader Tardigrade, who is known for his technical insights. According to him, the daily close of Dogecoin’s candle marks a definitive breakout from the bullish pennant pattern that has formed over the past month. This pattern, which is characterized by a period of consolidation after a strong upward movement, often precedes a new increase in the asset’s price.
#Dogecoin daily candle ends with a BREAKOUT candle from the Bullish Pennant 🔥$Doge is eventually pushed above resistance to break the pattern and begin the next rise to the $1.3 target 🚀 https://t.co/ePF5JXL5WZ pic.twitter.com/TQnSz9jaRm
— Trader Tardigrade (@TATrader_Alan) December 2, 2024
In the case of the Dogecoin price, this upward movement started from early November around $0.143, until it rose above $0.43. This adds up to a 200% rally in less than two weeks. Since then, the Dogecoin price has not yet undergone a strong rally, albeit there have been some upward moves also supplemented with corrections. These swings have collectively formed the bullish pennant, positioning the Dogecoin price for its next potential breakout.
Why a 200% rally is possible from here
The breakout from the bullish pennant has increased the opportunity Dogecoin reaches new heights. Now that the outbreak has been confirmed, the Dogecoin price could rise another 200% in early December, just like it did in early November. Projections indicate that this could allow the Dogecoin price to break above the current all-time high of $0.7316 and then the $1 level.
According to Trader Tardigrade, the price target to watch is $1.3, which is exactly 200% of the bullish pennant breakout level. However, reaching this level will require significant bullish momentum from Dogecoin bulls, clearing key resistance zones along the way. The first of these major resistance zones is at $0.457. Additionally, the next major challenge will be a significant break above the current 2024 high at $0.476.
At the time of writing, Dogecoin price is trading at $0.439, having risen 2.77% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com