On January 20th, Monday, the crypto market experienced heightened volatility as Donald Trump took the oath of office, becoming the 47th President of the United States. The event pushed the Bitcoin price to a new high of $109,356 before reverting to $103k, triggering similar fluctuations in the altcoin market. However, the Dogecoin price has managed to stabilize at $0.35 and shows a potential breakout from a bullish pattern.
Key Highlights:
- An ascending channel drives the main uptrend in Dogecoin price, while a pennant pattern displays the in-between consolidation in this rally.
- The DOGE price correction could plummet another 6% before testing the key support of the pennant triangle.
- A positive alignment between daily Exponential moving averages (20, 50, 100, and 200) hints at a bullish sentiment among investors.
Dogecoin Network Sees Spike in High-Value Transactions
The Dogecoin (DOGE) network is witnessing a remarkable increase in high-value transactions, according to the latest data from crypto analyst Ali Martinez. Over the past 24 hours, transactions exceeding $1 million surged to an impressive 588, highlighting renewed activity on the popular meme-based cryptocurrency’s blockchain.
As Dogecoin continues to see heightened attention, analysts suggest that this could be a pivotal moment for the token’s value and adoption trajectory.
In another tweet, Ali Charts highlights the formation of an ascending channel pattern in DOGE’s weekly time frame chart. The pattern is characterized by two ascending trendlines, providing dynamic support and resistance during an uptrend,
Since 2020, the pattern’s lower trendline offered investors a key accumulation zone to recuperate the exhausted bullish momentum. If history repeats, the recent reversal from bottom support could drive the next leap to a high of $15.
Dogecoin Price Eyes $0.75 as Pennant Pattern Builds Momentum
Over the past two months, the Dogecoin price has showcased a sideways trend, gradually narrowing within two converging trendlines. The consolidation hints at the formation of a continuation pattern called a pennant.
Currently, the DOGE price trades at $0.35 with an intraday loss of 0.35%. The falling price could plunge another 6% to seek support at the pattern’s lower trendline. If buyers defend the aforementioned trendline, the consolidation trend will continue and build bullish momentum for the next breakout.
A successful flip of the overhead trendline into potential support could push the asset to a near-term target of $0.75.
Also Read: Ethereum Price Reversal Pattern and Whale Activity Points to $6k Rally
