Dogecoin DOGE/USD shot up over 8% higher at one point on Sunday as it continued to run higher in an uptrend pattern Benzinga called out on Friday. The crypto may also be attempting to break up from a bull flag pattern on the daily chart.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines.
- For bearish traders, the “trend is your friend” (until it’s not) and the stock may continue downwards within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
- Bullish traders will want to watch for a break up from the upper descending trendline of the flag formation, on high volume, for an entry. When a stock breaks up from a bull flag pattern, the measured move higher is equal to the length of the pole and should be added to the lowest price within the flag.
A bull flag is negated when a stock closes a trading day below the lower trendline of the flag pattern, or if the flag falls more than 50% down the length of the pole.
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The Dogecoin Chart: Dogecoin’s bull flag pattern was created between March 15 and Saturday, with the pole formed between March 15 and March 28 and the flag formed over the days that have followed. The measured move, if the pattern is recognized, is about 39%, which indicates Dogecoin could trade up over the 18-cent mark in the future.
- Traders and investors can watch for Dogecoin to continue breaking up from the bull flag pattern on higher-than-average volume to indicate the pattern is in play.
- Dogecoin’s uptrend is also intact, with the most recent higher low printed on Friday at the $0.132 level and the most recent higher high created at the $0.153 mark on March 28. If the crypto breaks up from the bull flag pattern later on Sunday or over the coming days, Dogecoin will print a higher high to confirm the uptrend remains in the works.
- If Dogecoin closes the 24-hour trading day near its high-of-day price, it will print a bullish engulfing candlestick pattern, which could indicate higher prices will come on Monday. If higher prices don’t come, the second most likely scenario will be that Dogecoin prints a bullish inside bar pattern.
- If the crypto closes the trading day under the $0.142 level, it will fall back within the flag formation, which could indicate continued consolidation.
- Dogecoin has resistance above at $0.146 and the 16-cent mark, and support below at $0.135 and at 12 cents.
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