Dogecoin Price Breaks Daily Candle With A Breakout Of The Bullish Pennant, Why A 200% Rally Is Possible

The Dogecoin price has undergone bullish action in the last 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 seen the Dogecoin price break to the upside of a price pattern formation, which suggests that another major rally is ahead. Interestingly, technical analysis suggests that the Dogecoin price is on track to go on 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, which has opened it to another 200% price rally from here. Particularly, this resistance breakout occurred as a push above a bullish pennant formation on the Dogecoin price chart, which has been in play since the beginning of 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, Dogecoin’s daily candle closure marks a definitive breakout from the bullish pennant pattern that has been forming over the past month. This pattern, characterized by a period of consolidation following a strong upward move, often precedes another leg up in the asset’s price. 

#Dogecoin daily candle closes with a BREAKOUT candle of the Bullish Pennant 🔥$Doge is finally pushed above the resistance to break the pattern and starts the next surge to the target $1.3 🚀 https://t.co/ePF5JXL5WZ pic.twitter.com/TQnSz9jaRm

— Trader Tardigrade (@TATrader_Alan) December 2, 2024

For the case of the Dogecoin price, this upward move started from the beginning of November around $0.143 up until it reached above $0.43. This comes to a 200% rally in less than two weeks. Since then, the Dogecoin price has yet to undergo a strong rally, albeit a few upward moves that have also been complemented by corrections. These fluctuations have collectively shaped the bullish pennant, positioning the Dogecoin price for its next potential breakout move.

Why A 200% Rally Is Possible From Here

The breakout from the bullish pennant has raised the possibility of Dogecoin reaching new heights. With the breakout confirmed, the Dogecoin price could witness another 200% rally in early December, much like it did in early November. Projections indicate that this could see the Dogecoin price breaking above its current all-time high of $0.7316 and subsequently the $1 level. 

According to Trader Tardigrade, the price target to watch is $1.3, which is exactly 200% from the bullish pennant breakout level. Achieving this level, however, will require significant bullish momentum from Dogecoin bulls, with key resistance zones needing to be cleared along the way. The first of these key resistance zones lies at $0.457. Beyond this, the next significant challenge will be a significant break above the current 2024 high of $0.476.

At the time of writing, the Dogecoin price is trading at $0.439, and is up by 2.77% in the past 24 hours.

Featured image created with Dall.E, chart from Tradingview.com