Dogecoin [DOGE] could head in this direction after forming this bullish pattern

On Nov 6, 2022

After finding a bullish volatile break, Dogecoin witnessed a bullish pattern on its daily chart.
DOGE’s Open Interest in the past 24 hours corroborated with the increased bullishness.

Dogecoin’s [DOGE] 25 October’s rebound from the $0.06 support level formed a solid foundation for the bulls to inflict exponential gains on the charts. As a result, the meme coin jumped above its daily 20/50/200 moving averages to exhibit a one-sided bullish edge.

Meanwhile, the recent growth traced a bullish pattern in the daily timeframe. At press time, DOGE was trading at $0.1286, up by 5.53% in the last 24 hours.

Can DOGE bulls inflict another rally?

Source: TradingView, DOGE/USD

The recent bull run aided the buyers in flipping the $0.111-mark from resistance to support after a staggering 140% ROI from 25 October to 1 November. In the meantime, the $0.14 ceiling plateaued the streak of green candlesticks.

Additionally, the recent price movements chalked out a bullish pennant over the last few weeks. Any breakout above the pattern could position the coin for an upside.

A sustained sway above the pattern can expose DOGE to an upside toward the $0.17 region in the coming times. A break above the $0.14 ceiling can reaffirm the upside chances.

Generally, up-breakouts in pennants are more likely when the volume trends upwards. But in this case, the volumes were on a downtrend. Hence, any immediate pulldowns could continue to find reliable rebounding grounds in the $0.111 region.

The Relative Strength Index (RSI) slightly declined from the overbought mark but maintained its position above the 70-mark. Any reversal on the index could ease the buying pressure.

An increase in Open Interest alongside the price

blank

Source: Coinglass

The dog-themed crypto’s Open Interest in the past 24 hours across all exchanges registered an uptick of over 8.5%. Correspondingly, DOGE saw an over 5% 24-hour price increase. This reading confirmed the bullish edge in the futures market.

Finally, the dog-themed coin shared an 84% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.

This article first appeared on AMBCrypto