Dogecoin Consolidation Breakout Looks for 50% Rally
Dogecoin (DOGE) price broke above a 2-month consolidation pattern opening the door for an extended rally. This consolidation pattern projected an upside-measured move price target of around $0.10, representing a 3 standard deviation move from the current price range or roughly 50% gain.
DOGE Consolidation Pattern
DOGE’s price fluctuations since August 26 fit into a rectangle consolidation pattern with a horizontal support of $0.055 and a horizontal resistance level of $0.068. The breakout above $0.068 is potentially calling for an end of the consolidation pattern.
In theory, measuring the size of recent consolidation can help us identify possible price targets to the upside. This is also referred to as the measured move price target, which states that the next swing leg will be roughly equal to the previous swing leg.
If we project the same price range to the upside, the next potential resistance comes at the $0.081 level, representing one standard deviation from the current price range. A 2 standard deviation move will send the DOGE price at $0.095, while a 3 standard deviation move will send the DOGE price at $0.108.
The current price structure favors a 3 standard deviation move because it aligns with a fresh supply zone that hasn’t been retested.
RSI Oscillator
Additionally, the Relative Strength Index (RSI) is printing higher highs in momentum readings, reaching the highest reading since April 2021.
This is a positive signal that aids the bullish case scenario.
