Does This Mean Dogecoin Price Will Rally To $0.31 Soon?

Dogecoin shows early signs of a potential rally, indicated by a bull pennant formation on the 1-hour chart. This comes amidst Bitcoin's recent surge, prompting traders to explore more volatile altcoins.

Dogecoin's Bull Pennant Suggests Impending Bullish Run

Crypto analyst Ali Charts identifies a classic bull pennant forming on Dogecoin's 1-hour chart. This pattern typically follows a sharp price increase and subsequent consolidation within a converging range. Currently priced at $0.2296, Dogecoin sits below the 0.786 Fibonacci retracement level at $0.23544, acting as near-term resistance. The pennant, developing since May 10th, shows narrowing price fluctuations, suggesting building pressure for a potential breakout. Decreasing volume further supports this pattern's typical development. A breakout above the upper resistance trendline could target $0.31, based on the measured move from the initial price surge.

Source: X

Dogecoin's Fibonacci Levels and Breakout Points

Technical indicators reveal key Fibonacci retracement levels, drawn from the swing low of $0.16416 to the high of $0.25973. These levels serve as significant support and resistance markers. Recent pullbacks have found support at the 0.618 Fib level ($0.21798), while current resistance sits at the 0.786 Fib level ($0.23544). A breakout above the 0.786 Fib level, potentially flipping it into support, could propel Dogecoin towards the previous high around $0.25973. Further targets include the 1.27 and 1.41 Fib levels, suggesting potential surges to $0.29425 and $0.31406, respectively. Conversely, a price reversal would see key support levels at $0.21798 (0.618 Fib) and $0.20649 (0.5 Fib).

On-Chain Metrics Indicate Rising Activity

Whale.io's on-chain data reveals a significant increase in Dogecoin's realized profits (225.58% in 24 hours, reaching $36.1 million) and daily transaction volume ($595.9 million), suggesting heightened trading activity. Coinglass data shows open interest climbing 59.64% to $3.02 billion, and trading volume surging 62.99% to $7.68 billion. Options volume also jumped over 200%, with open interest now at $745.09 million, demonstrating increased trader participation and anticipation of further price movement.

Source: Coinglass

Historical Pattern Suggests Long-Term Accumulation

Technical analyst Trader Tardigrade highlights a potential third-round bottom formation on Dogecoin's 6-month chart, similar to patterns preceding major rallies in 2017 and 2021. This could indicate a long-term accumulation phase, potentially leading to a significant price increase, possibly towards $6, if historical patterns repeat.

Source: X

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