Dogecoin’s Second Bull Flag: Key to Massive Breakout? DOGE to $0.90?

• Dogecoin forms a second bull pennant, signaling a potential breakout towards $0.90.
• MVRV ratio at 45.65% indicates DOGE has room for growth before reaching overbought levels.
• Analysts note possible short-term correction, but long-term trend remains bullish.

Dogecoin (DOGE) is on the rise again. Analysts are now on the lookout for a second bull pennant pattern form, signaling another potential breakout. This could push the meme coin to $0.90.

Analysts note that the second bull peak has emerged on the 2-hour price chart, indicating that the flag portion of the pattern may be nearing completion.

Historically, these patterns signal a continuation of the preceding trend, with breakouts often aligning with the prior bullish movement. Crypto analyst Trader Tardigrade predicted a potential breakout from this pattern, projecting Dogecoin’s price could rise to $0.90.

MVRV Ratio Suggests Room for Growth  

The Market Value to Realized Value (MVRV) ratio supports a bullish outlook. According to Ali Martinez, Dogecoin’s MVRV ratio is 45.65%, below the crucial level of 78%, which has historically marked the peak of DOGE rallies.

Martinez highlighted that previous price surges have repeatedly ended when the MVRV ratio approached or exceeded 78%. With the current reading well below that level, Dogecoin appears to have substantial room for further growth.

Short-Term Correction Expected Before Rally Continues  

While the long-term trend remains bullish, Martinez also flagged potential short-term risks. The TD Sequential indicator has shown sell signals on Dogecoin’s 4-hour and 12-hour charts, with a similar signal emerging on the daily chart.

Read also: Dogecoin Breaks Out in November 2024, Eyes $0.40 Resistance

However, analysts point to Dogecoin’s position within a ten-year ascending price channel to indicate its potential. Martinez noted that DOGE has already breached the lower boundary of this channel, suggesting the start of a prolonged rally.

Based on this channel’s structure, Dogecoin could aim for the middle boundary at $2.40 or test the upper boundary near $18.

As of press time, Dogecoin was trading at $0.3724, representing a 1.61% increase in the past 24 hours and a 32.76% gain over the last seven days. With a trading volume of $8.3 billion and a circulating supply of 150 billion DOGE, its market capitalization currently stands at $54.7 billion.