Analyst Highlights Bullish High Tight Flag Pattern For Dogecoin

The Dogecoin price, which has been on a consolidation trend since November 12, has given rise to a rare and bullish chart pattern known as the high tight flag

The Dogecoin price, which has been trading within a narrow range since mid-November, appears to be setting up for a breakout thanks to a bullish chart pattern.

According to crypto analyst Trader Tardigrade, the Dogecoin price is currently forming a high tight flag pattern on the daily candlectick timeframe. This pattern, which is a variant of the bull flag, is extremely rare in technical charting and usually precedes explosive price movements.

The significance of this pattern is highlighted by the analyst in a post on social media platform X, which reads: “#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.”

This high tight flag pattern, to begin with, points to the inevitability of the Dogecoin price reaching the $1 level. Furthermore, the analyst anticipates that the combination of strong price momentum, rising market enthusiasm, and FOMO (fear of missing out) among retail investors will ultimately propel the Dogecoin price to targets ranging from $5 to $10.

A Deeper Look at the High Tight Flag Pattern

A particular bullish instance of the bull flag pattern is known as the high tight flag. Both patterns include a flagpole and a flag/handle, in contrast to the bull flag. The formation of a high tight flag adheres to stringent criteria, making it a relatively uncommon pattern.

This criteria is characterized by a sharp price increase of at least 100% over a short period with a maximum of eight weeks. This rapid ascent forms the ‘flagpole’ of the price pattern. In the case of the Dogecoin price, the flagpole was formed over nine days from November 3 to November 12, where it registered a gain of about 180%.

Following this surge, the price enters a consolidation phase, moving sideways or slightly downward, creating the ‘flag/handle’. This consolidation usually retraces no more than 10% of the initial rise and lasts at least five days to a maximum of three weeks.

In the case of Dogecoin, the flag has been in play for the past ten days, with a handle depth of 10%. The pattern is considered complete when the price breaks out above the consolidation range, often leading to further gains.

At the time of writing, Dogecoin is trading at $0.3926, with a 1.88% gain in the past 24 hours. A run towards the first price target at $1 would translate to a 155% gain. Other price targets at $5 and $10 represent returns of 1,170% and 2,440%, respectively, from the current price.