Dogecoin eyes $0.12 target after bull flag breakout, analyst Ali reports

Technical signals and chart patterns

Ali highlighted the emergence of a bull flag pattern on Dogecoin’s lower timeframe charts. A bull flag is considered a continuation formation that often develops after a significant upward move, followed by a consolidation phase. If the price manages to break out above this consolidation, further gains are often expected.

Ali suggested that Dogecoin’s recent bull flag breakout has aligned with bullish indicators seen on higher timeframes, potentially positioning the token for further upward movement.

The analyst also pointed to the Tom DeMark Sequential, a widely-used technical indicator, which has signaled a buy on Dogecoin’s daily chart. This indicator is typically employed to spot trend exhaustion and possible reversals, hinting that Dogecoin’s recent correction may be bottoming out.

In addition, Dogecoin appears to have formed a morning doji star pattern on the daily timeframe. This is a classic candlestick reversal pattern that often emerges near the conclusion of a downtrend, suggesting increased buyer participation and waning selling pressure.

Mini dictionary: Tom DeMark Sequential, a technical analysis indicator used to identify potential trend reversals and exhaustion points in price charts by assigning numbers to price bars based on specific conditions.

Market reaction and accumulation

Dogecoin traded 5.3% higher over the last 24 hours, reaching $0.087. The upward move came as the broader cryptocurrency market rebounded, spurred by softer expectations for monetary policy tightening. Bitcoin surpassed $81,000, with risk assets generally seeing renewed buy interest.

On-chain activity also showed notable accumulation by large holders, known as whales. According to Ali, over 400 million DOGE—Dogecoin’s native cryptocurrency—have been purchased within the last five days, indicating continued confidence among significant investors.

This buying pressure has strengthened a critical on-chain support zone for Dogecoin, which sits near $0.0813. Around 35 billion DOGE have historically changed hands at this level, underlining its importance as a defense point for the asset’s bulls.

The integrity of the $0.0813 support zone remains crucial. As long as this level holds, the setup favors continued bullish momentum, while $0.12, $0.1552, and $0.1774 stand out as the next resistance targets for Dogecoin.

Market watchers will be closely tracking Dogecoin’s price action, especially around the critical support area, to gauge the sustainability of its latest rally.