Dogecoin Price Analysis: Getting Its Bark Back?
Altcoins have seen some mega rallies lately. But Dogecoin – usually one of the most speculative of them all – hasn’t had a “proper run” just yet. Sure, it’s up around 50% this quarter. But that’s hardly the FOMO levels it’s commanded in the past.
Long-term Dogecoin price analysis: Bull pennant in the making?
If you believe in technical charting patterns (and occasionally dabble in meme coin speculation), this chart might interest you. The orange line connects the monthly closing prices of Dogecoin since 2017 – i.e. it cuts out the short-term price movement to capture the bigger trend.
The chart shows that Dogecoin is potentially breaking out of a long-term bull pennant – a technical pattern that might signal another leg up in the price. Here’s the basic idea:
First, buyers push the price higher in a strong upward move (in this case, Dogecoin bull markets). Second, the price consolidates into a pennant shape (in this case, Dogecoin bear markets). And third, the price breaks through the top of the pennant, continuing with the uptrend (see the blue and grey circles).
Bull pennants are a kind of price compression pattern. Here, the price compresses into a tighter and tighter trading range, as investors lose interest in the market. Eventually, the compression cycle ends – and you then get the expansion. You can think of it as the calm before the storm.
What’s the opportunity?
Compression patterns don’t have to break to the upside – they can break to the downside, too. But if the crypto market trends higher in the coming months, Dogecoin might just get its bark back. It’s no secret that Elon Musk is a fan. It only takes a tweet from the world’s richest man.
Disclaimer: This is not investment advice. I currently have some long exposure to Dogecoin. That might change depending on how things pan out. Sign up for my newsletter for more crypto updates like this one!