Dogecoin Set To Skyrocket By Saturday, Warns Crypto Analyst
Cryptocurrency analyst Kevin (@Kev_Capital_TA) spotted a bullish pennant pattern on the 4-hour Dogecoin/USD price chart, indicating that a major price move could occur this Saturday. in a postal On
Dogecoin Price Breakout on Saturday?
The chart Kevin shared illustrates the bull pennant pattern. A bull pennant usually signals a pause in the current uptrend, which may then continue. This pattern is characterized by converging trend lines that outline a period of price consolidation following a strong advance.
In the case of Dogecoin, the pennant is depicted by converging yellow trend lines, indicating declining volatility and a consolidation phase. memecoin traded at around $0.38 during this period pennant structure. Kevin’s analysis suggests that this key breakthrough could happen “as late as Saturday.”
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In technical analysis terms, a breakout occurs when price moves beyond a pattern’s defined trendline, indicating a potential continuation or reversal of the trend. Whereas bullish momentum An upward breakout is usually expected before a pennant is formed. However, Kevin acknowledges the unpredictability of the market and therefore maintains a cautious stance: “Up or down,” he noted.
The chart also highlights several horizontal lines representing key support and resistance levels. The overhead resistance is near $0.54, which could be tested if an upward breakout occurs. Instead, immediate support lies around $0.33 and $0.2950, which will be crucial if the price breaks to the downside.
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Kevin also highlighted the role of the Stochastic Relative Strength Index (RSI) on the daily chart. He said: “Stochastic RSI is a prominent momentum indicator that can show a strong trend in either direction. Dogecoin’s daily RSI has almost reset and it may take another week or days to fully reset. Once that happens Done, I expect the next stop will begin.”
The Stochastic RSI is a technical momentum indicator that compares the level of the RSI to its high and low ranges over a set period, providing insights into potential overbought or oversold conditions. The daily RSI reset suggests that previous overbought conditions have eased, potentially paving the way for the next major price move.
Kevin further highlighted the potential impact of the current consolidation phase, adding: “The longer Dogecoin consolidates, the bigger the next phase will be. In my opinion, the next leg will be DOGE’s biggest leg bull market And will give us a clear idea of where the top of the cycle is. “
At press time, DOGE was trading at $0.39.
Featured image created using DALL.E, chart from TradingView.com
