Dogecoin (CRYPTO: DOGE) prices rose again this week, stirring fresh optimism across the crypto market.

Dogecoin had shot up from lows of nearly $0.17 on May 7 to highs of $0.249 on May 11, scoring a weekly gain of 36.9%. The token was trading at $0.236 at press time, up 4.33% in the last 24 hours.

Analysts are closely watching Dogecoin's chart, particularly the bullish formation shaping up on the 4-hour timeframe.

Crypto analyst Trader Tardigrade highlighted the "Bull Flag" pattern. The pattern begins with a steep rally - what traders call a "Flag Pole" - rising from around $0.164 to $0.247. The price has since entered a narrow pullback zone marked by two falling lines, forming the flag part of the pattern.

"Dogecoin is attempting to break out of the Bull Flag pattern, setting a target at $0.37." This target is based on the measured move approach. It takes the height of the previous rise and adds it to the breakout point. If the pattern holds, it could rally over 50% from current levels.

Support And Resistance Zones Key To Next Move

Meanwhile, another crypto analyst, Ali Martinez, pointed to two major levels that now act like bookends for Dogecoin's next move. The token is caught between heavy resistance at $0.36 and strong support at $0.21.

According to on-chain data, $0.36 is a critical zone, where 5.7 billion DOGE were last moved. This level may trigger heavy selling if tested again, making it more than just a resistance - it could be where many holders take profit.

The support at $0.21, however, appears strong. About 11.1 billion DOGE, which represents 7.5% of the token's total supply, changed hands near this zone. This area is the most active trading range outside of the coin's all-time high regions. If the price pulls back to this range, it will likely act as the first major support line.

The coin is now locked in a phase of sideways action. What happens next will be shaped by whether it breaks above or falls below this $0.21 to $0.36 range. Analysts say that how Dogecoin handles either edge of this range could set the tone for the coming weeks.

Traders are watching for a breakout or a breakdown.

Eyes are currently on the $0.247 resistance level. If Dogecoin manages to push past it with strong trading volume, it would confirm the bullish pattern. A breakout past $0.36 would not just meet Tardigrade's target - it would also mark the strongest upward signal since its last major surge.

If the opposite occurs, and Dogecoin slides below $0.21, the entire bullish setup could be called into question. That would likely lead to a reassessment of its near-term outlook.

With price action nearing critical thresholds, Dogecoin's next move holds weight. Whether it climbs above or slips below will shape trader sentiment for some time. For now, the pattern looks promising, but the market awaits confirmation.