Massive Breakout in Dogecoin is Expected After Consolidation Pattern

The biggest memecoin, Dogecoin (DOGE) joined the party with Bitcoin in the latest rally, in which the meme coin soared to a $0.42 resistance level

Dogecoin (CRYPTO: DOGE) joined the latest Bitcoin rally on Wednesday, briefly touching the $0.42 resistance level before being pushed back below $0.37.

Here's what happened: Dogecoin has formed a consolidation pattern after rising more than 168.34% in the last month, taking the meme coin from $0.14 to $0.39. This marks the third time that DOGE has faced resistance at $0.42, making it a key psychological level before the meme coin can continue its run toward its all-time high of $0.73. Dogecoin is trading at $0.38 at the time of publication, up 1.5% in the last 24 hours.

Usually, when an asset breaks out of a consolidation pattern, a large breakout in price often follows.

See More: Live Bitcoin Price

Why It Matters: Donald Trump's recent victory in the U.S. election saw him making promises that could be good for the cryptocurrency community. He has pledged to create the first Bitcoin reserve in the federal treasury.

Trump also appointed Dogecoin fan Elon Musk to head the newly created Department of Government Efficiency (DOGE). This announcement has helped boost market confidence and investment in DOGE, leading to the meme coin's rally.

Several key technical indicators are suggesting that there could be more rally left in Dogecoin. For example, whales have been accumulating DOGE with large purchases, signaling a bull run.

See More: DOGE Could Rally To $0.82 If It Breaks Bull Flag Pattern