- Dogecoin price is in a bullish pennant pattern at the end of the consolidation.
- A key close above the pennant at $ 0.061 suggests a 90% rebound.
- The sell-signal of the sequential indicator Tom DeMark (TD) could possibly delay or even invalidate the optimistic outlook of DOGE.
The Dogecoin price has turned towards the end of a phase of consolidation and is about to point to a volatile upward trend.
Dogecoin price on the verge of a higher high
Dogecoin price has made a series of lower highs and higher lows since its 1120% rebound ended on January 29th. While the initial upswing can be seen as a “flagpole”, the subsequent consolidation is called a “pennant”. So DOGE has been forming a bullish pennant pattern since January 29th.
This technical formation is a continuation pattern and projects a continuation of the previous price development. Therefore, the setup suggests a 90% upswing, which is the height of the flagpole and adds to the breakout point at $ 0.061. With that in mind, DOGE is at $ 0.11.
The SuperTrend indicator, which triggered a buy signal on March 8th, gives credibility to this bullish scenario.
Regardless of the bullish outlook, investors should note that the TD Sequential indicator has printed a sell signal in the form of a green nine-candlestick on the 12-hour chart. This setup predicts a 1: 4 candlestick correction, so the Dogecoin price rally may be delayed.
DOGE / USDT 12 hour chart
Due to an unforeseen spike in selling pressure, a Dogecoin price falling through the lower trendline of the pennant formation at $ 0.055 would invalidate the bullish pennant formation. In such a case. Expect DOGE to correct to $ 0.051 as the trend is lower.
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