- DOGE has formed a pennant pattern that could drive a rally for the coin soon.
- The coin also hit the one-month SAR, indicating an uptick similar to the bull run of 2021.
- If buyers defend the $0.70 level, Dogecoin may rally to $0.14 in the mid-term.
Crypto Tony, a trader with over 358,000 followers on X (formerly Twitter), opined that Dogecoin (DOGE) might soon break out and lead an uptick for other memecoins. Sharing a DOGE/USD chart via his page, Tony noted that DOGE had formed a pennant pattern.
From the chart, he also explained how the DOGE price had been preceded by a steep consolidation. Usually, this move is followed by a breakout in either direction.
However, according to the analyst, DOGE’s breakout is most likely in the upward direction, and the price could move well above $0.08. Meanwhile, DOGE’s value has decreased by 5.24% in the last 24 hours, as the price also fell to $0.076.
Another Repeat of 2021 Performance?
Like Crypto Tony, another trader who has been bullish on Dogecoin is Tony “The Bull.” On November 16, Tony “The Bull” revealed that DOGE had hit the 30-day Stop And Reverse (SAR) indicator.
He also mentioned that the last time the meme hit the indicator was around 2021, when the price jumped by 23,000%.
The parabolic SAR mainly works as an indicator to identify potential reversals in price movements. The indicator can also be used to check for entry and exit points. So, it is likely that DOGE, after it recovers from the recent decrease, may rally in the mid-term.
Should the trend reverse in the upward direction, the 0.618 Fibonacci extension level shown on the monthly timeframe revealed that DOGE may hit $0.14. Meanwhile, the Relative Strength Index (RSI) had flattened to 47.43.
The RSI reading implies that the bullish momentum around DOGE has been low compared to the heights of previous years. For DOGE to have a chance at $0.14 in the medium term, the RSI needs to exit its compression position. If intense buying pressure appears, DOGE may surpass $0.14 and head in the $0.16 direction.
Traders Target $0.12
Furthermore, the Open Interest in Dogecoin has decreased since its hike on November 20, according to Coinglass. The high Open Interest means that more market participants are paying more attention to the DOGE/USD derivative pairs.
However, low Open Interest means market players are closing their positions. Considering the current DOGE trend, the decreasing Open Interest means that the bearish trend was weak. So, DOGE’s plunge may not go below $0.07.
But if the Open Interest increases when DOGE faces the upside, it can lend a hand to the bullish price trend. From the data above, traders are targeting DOGE to hit $0.12 once the bullish momentum resumes.
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