Dogecoin price will soar today, electronic money analyst warns

Cryptocurrency analyst Kevin (@Kev_Capital_TA) has identified a bullish pennant pattern in the 4-hour Dogecoin/USD price chart, indicating a significant price movement that could occur this Saturday. In a post on X, Kevin commented: "Dogecoin is currently forming a more defined potential bullish pennant pattern, which has multiple touchpoints on each side with plenty of time to consolidate. One thing to pay attention to people." Will Dogecoin Price Breakthrough? The chart shared by Kevin illustrates the flag pattern of price increase. The flag pattern of price increase usually indicates a temporary pause in the prevailing upward trend, followed by the potential continuation of that trend. This pattern is characterized by converging trend lines, including a phase of price consolidation after a sharp rise.

In the case of Dogecoin, the flag is distinguished by converging yellow trend lines, indicating a decreasing volatility and a consolidation phase. The memecoin is trading around $0.38 within this flag structure. Kevin's analysis suggests that this significant breakout could occur "no later than Saturday". According to technical analysis terminology, a breakthrough occurs when the price exceeds the defined trend lines of a formation, signaling the potential for continuation or reversal of the trend. With an upward momentum before the formation of a flag pattern, an upward breakthrough is usually anticipated. However, Kevin still maintains a cautious stance by acknowledging the unpredictable nature of the market: 'Rise or fall,' he notes. The chart also highlights some horizontal lines representing key support and resistance levels. The upper resistance level is identified at around $0.54, which could be tested if a bullish breakout occurs. On the other hand, immediate support levels are located at around $0.33 and $0.2950, which will be crucial if the price declines. Kevin also emphasized the role of the Relative Strength Index (RSI) in the daily chart. He stated, 'The RSI is an extraordinary momentum indicator in strong trends in both directions. The daily RSI is almost reset for Dogecoin and may need another week plus or minus a few days to fully reset. Once it is reset, I expect the next leg to begin.' Random RSI is a momentum indicator that compares the RSI level to its high-low range over a certain period, providing detailed information about overbought or oversold buying conditions. Resetting the daily RSI shows that previous overbought conditions have diminished, potentially paving the way for significant price fluctuations. Emphasizing further on the potential impact of the current consolidation phase, Kevin added: 'The longer Dogecoin consolidates, the bigger the next leg will be. In my opinion, the next leg will be the biggest of the DOGE price increase and will reveal where it will peak in the cycle.'