The Dogecoin value, which has been on a consolidation trend since November 12, has given rise to a uncommon and bullish chart sample often known as the excessive tight flag. This sample, which is just like the bull flag, is establishing the Dogecoin value for a major upward motion.
Analyst Highlights Bullish High Tight Flag Pattern For Dogecoin
Trader Tardigrade, recognized for his insightful technical analyses, identified that the Dogecoin value is at the moment forming a excessive tight flag sample on the every day candlectick timeframe, which is a rarity in technical charting that always precedes explosive value actions. According to his submit on social media platform X, the importance of this sample lies in its implications of a “highly possible significant upward price movement.”
In his words: “#Dogecoin is forming High Tight Flag Pattern 🔥 ‘High Tight Flag Pattern’ stands out as a rare, BUT Extremely Bullish signal that indicates a highly possible significant upward price movement.”
First off, the emergence of this excessive tight flag sample means the $1 stage is inevitable for the Dogecoin value. The analyst additional speculates that the mix of robust value momentum, rising market enthusiasm, and FOMO (worry of lacking out) amongst retail traders is finally going to push the Dogecoin value to targets of $5 to $10.
Understanding The High Tight Flag Pattern
The excessive tight flag is a particular bullish case of the bull flag sample. Both patterns are characterised by a flagpole and a flag/deal with. Unlike the bull flag, the formation of a excessive tight flag follows stringent standards, which makes it considerably fee. This standards is characterised by a pointy value enhance of not less than 100% over a brief interval with a most of eight weeks. This speedy ascent kinds the ‘flagpole’ of the worth sample. In the case of the Dogecoin value, the flagpole was formed over nine days from November 3 to November 12, the place it registered a acquire of about 180%.
Following this surge, the worth enters a consolidation part, shifting sideways or barely downward, creating the ‘flag/handle’. This consolidation often retraces not more than 10% of the preliminary rise and lasts not less than 5 days to a most of three weeks.
In the case of Dogecoin, the flag has been in play for the past ten days, with a deal with depth of 10%. The sample is taken into account full when the worth breaks out above the consolidation vary, usually resulting in additional features.
At the time of writing, Dogecoin is buying and selling at $0.3926, with a 1.88% acquire previously 24 hours. A run in the direction of the primary value goal at $1 would translate to a 155% acquire. Other value targets at $5 and $10 signify returns of 1,170% and a pair of,440%, respectively, from the present value.
Featured picture created with Dall.E, chart from Tradingview.com
