The Dogecoin value, which has been on a consolidating trajectory since November 12, has given rise to an uncommon and optimistic chart formation referred to as the high tight flag. This configuration, resembling the bull flag, is positioning the Dogecoin value for a notable ascent.
Expert Showcases Optimistic High Tight Flag Formation For Dogecoin
Trader Tardigrade, recognized for his remarkable technical assessments, highlighted that the Dogecoin value is currently crafting a high tight flag configuration on the daily candlestick timeframe, which is a rarity in technical charting that frequently precedes dramatic price movements. As per his message on social platform X, the importance of this pattern lies in its projections of a “highly probable substantial upward price movement.”
In his statement: “#Dogecoin is establishing High Tight Flag Pattern 🔥 ‘High Tight Flag Pattern’ emerges as a rare, BUT Extremely Optimistic indicator that suggests a highly probable substantial upward price movement.”
To begin with, the appearance of this high tight flag formation signifies that the $1 mark is unavoidable for the Dogecoin value. The analyst further speculates that the mix of robust price momentum, increasing market excitement, and FOMO (fear of missing out) among retail investors is ultimately going to drive the Dogecoin value to targets ranging from $5 to $10.
Comprehending The High Tight Flag Formation
The high tight flag is a distinctive bullish variant of the bull flag formation. Both formations are defined by a flagpole and a flag/handle. In contrast to the bull flag, the development of a high tight flag adheres to strict criteria, which makes it occasionally uncommon. This criterion is defined by a swift price increase of at least 100% over a short duration of a maximum of eight weeks. This rapid climb constitutes the ‘flagpole’ of the price formation. In the case of the Dogecoin value, the flagpole was established over nine days from November 3 to November 12, during which it recorded an increase of approximately 180%.
After this surge, the value enters a consolidation phase, moving laterally or slightly downwards, forming the ‘flag/handle’. This consolidation typically retraces no more than 10% of the initial rise and lasts a minimum of five days to a maximum of three weeks.
In Dogecoin’s instance, the flag has been active for the past ten days, with a handle depth of 10%. The formation is considered finalized when the value breaks out above the consolidation range, often resulting in additional gains.
As of this writing, Dogecoin is priced at $0.3926, showing a 1.88% increase over the past 24 hours. A move towards the initial price target of $1 would indicate a 155% gain. Additional price targets at $5 and $10 signify returns of 1,170% and 2,440%, respectively, relative to the current price.
Featured image created with Dall.E, chart from Tradingview.com