The Dogecoin price has been on a consolidation trend since November 12, giving rise to a rare and bullish chart pattern known as the high tight flag. This pattern, similar to the bull flag, suggests a significant upward movement for Dogecoin.
Trader Tardigrade, known for insightful technical analyses, highlighted the high tight flag pattern forming on the daily candlestick timeframe for Dogecoin. This pattern is a rarity in technical charting and often precedes explosive price movements. Tardigrade emphasized the significance of this pattern, indicating a highly possible significant upward price movement for Dogecoin.
According to Tardigrade, the emergence of the high tight flag pattern suggests that reaching the $1 level is inevitable for Dogecoin. He speculates that strong price momentum, growing market enthusiasm, and FOMO among retail investors will push Dogecoin’s price to targets of $5 to $10.
The high tight flag pattern is a special bullish case of the bull flag pattern, characterized by a flagpole and a flag/handle. This pattern follows stringent criteria, including a sharp price increase of at least 100% over a short period with a maximum of eight weeks. The flagpole for Dogecoin was formed over nine days from November 3 to November 12, with a gain of about 180%.
After the surge, the price enters a consolidation phase, creating the flag/handle. The consolidation retraces no more than 10% of the initial rise and lasts at least five days to a maximum of three weeks. Dogecoin’s flag has been in play for the past ten days, with a handle depth of 10%. The pattern is considered complete when the price breaks out above the consolidation range, leading to further gains.
Currently, Dogecoin is trading at $0.3926, with a 1.88% gain in the past 24 hours. A run towards the first price target at $1 would result in a 155% gain. Price targets at $5 and $10 represent returns of 1,170% and 2,440%, respectively, from the current price.
In conclusion, the high tight flag pattern suggests a bullish outlook for Dogecoin, with potential for significant upward movement. Analysts are optimistic about the price targets of $5 to $10, driven by strong momentum and market enthusiasm. The consolidation phase and formation of the pattern indicate a potential breakout and further gains for Dogecoin in the near future.
