Dogecoin (DOGE) Price Trajectory Hints at a Bullish Flag Formation Targeting $1.30

Dogecoin price has been closely watched by traders and investors alike, and some are suggesting that the meme coin could be due for a breakout. One analyst, who goes by Kevin on Twitter and has followed Dogecoin charts for years, pointed out a bullish flag formation on the daily timeframe.

According to Kevin, a strong price target zone around $1.30 fits within this pattern. He added that the recent consolidation of DOGE within a downward channel above the Macro Golden Pocket could be indicative of a breakout.

"Dogecoin daily forming a bullish flag after the recent consolidation within this downward channel above the Macro Golden Pocket," Kevin said in a recent tweet.

Interestingly, the measured move from the flagpole of the formation falls to the upper limit of the previously marked price zone. However, as Kevin pointed out, the future of DOGE depends on the action of Bitcoin in the near term, as the movement of the altcoin is under the mercy of larger market dynamics.

"As always, keep an eye on both of the assets to confirm this setup, considering that the future of DOGE depends on the action of BTC in the near term," the analyst added.

Dogecoin price follows Bitcoin's, could be forming downtrend channel

It also appears that Dogecoin's price action follows Bitcoin's, and it could be forming a downtrend channel within which it can stage an upside breakout. Kevin identified this nascent pattern, saying it should resolve by late January. These channels usually find resolution to the upside, so that should keep market participants hopeful.

"Similar to #Dogecoin we are now starting to see a new formation potentially appear on #BTC that being this downward channel. Looks like if these patterns end up playing out which is still premature to say the timing looks like some time by the end of January they would breakout," the analyst wrote.

Though it is still early to reach any conclusion, the confluence between Bitcoin's and Dogecoin's setups can indicate a concurrent uptrend for both. Kevin was quick to emphasize that one "shouldn't get ahead of ourselves here so that we don’t misinterpret the charts prematurely."

"The making of dogecoin up to $1.30 and a possible breakout by bitcoin are key events that might provide opportunities to traders for a potential shift in the momentum of the market," the analyst added.