Since November 12, Dogecoin has been experiencing a period of consolidation, and this has led to the formation of a bullish chart pattern known as the high tight flag. This pattern suggests that the price of Dogecoin is poised for a significant upward movement.

Analyst Identifies Bullish Chart Pattern for Dogecoin

Trader Tardigrade, recognized for his sharp technical analyses, has noted that Dogecoin is exhibiting a high tight flag pattern on the daily candlestick chart, which is an uncommon occurrence that usually signals dramatic price shifts. In a post on social media platform X, he highlighted that this pattern could indicate a substantial price increase.

He stated: “#Dogecoin is forming a High Tight Flag Pattern. This extremely rare but bullish pattern suggests there could be a major surge in price.”

According to the analyst, this bullish formation indicates that a rise to the $1 mark is likely. He speculates that a combination of strong price momentum, increasing market interest, and fear of missing out (FOMO) among retail investors could propel Dogecoin’s price targets to between $5 and $10.

Explaining the High Tight Flag Pattern

The high tight flag pattern is a distinct bullish variant of the bull flag pattern. Both patterns consist of a flagpole and a flag/handle, but the high tight flag requires strict criteria, making it relatively rare. Specifically, it involves a sharp price increase of at least 100% within a maximum of eight weeks, forming the ‘flagpole.’ In Dogecoin’s case, this flagpole developed over nine days, from November 3 to November 12, with an impressive gain of approximately 180%.

After this rapid increase, the price enters a consolidation phase where it either moves sideways or slightly declines, creating the ‘flag/handle’ formation. This consolidation typically retraces no more than 10% of the initial rise and lasts anywhere from five days to three weeks.

For Dogecoin, the consolidation phase has been active for ten days, maintaining a handle depth of 10%. The pattern will be validated once the price breaks out above this consolidation phase, often resulting in additional gains.

Currently, Dogecoin is trading at $0.3926, reflecting a 1.88% increase in the last 24 hours. Achieving the first target of $1 would yield a 155% gain, while reaching targets of $5 and $10 would provide returns of 1,170% and 2,440%, respectively, based on the current price.