Date: Wed, Jan 15, 2025, 07:17 PM GMT
In the cryptocurrency market, within the last hour, we are witnessing a bullish pump as the market reacted positively to the U.S. CPI report for December 2024. The report highlights that inflation increased to 2.9%, marking a 0.2% rise from the 2.7% recorded in November. In response, Bitcoin crossed the $99,000 mark, meeting market expectations, while core inflation rose less than anticipated.
Following this, top memecoin Dogecoin (DOGE) has entered the spotlight with noticeable gains, approaching critical breakout levels and signaling a potential continuation of its rally.
Source: Coinmarketcap
Bullish Pennant Pattern
According to crypto analyst @JohncyCrypto , Dogecoin (DOGE) has formed a bullish pennant pattern on the daily chart. The price has been consolidating between a descending resistance and ascending support line, forming this classic technical pattern that often indicates a continuation of upward momentum.
Dogecoin (DOGE) Chart / Source: @JohncyCrypto (X)
DOGE is now approaching the upper trendline of the pennant, currently sitting at $0.37. This level is critical to watch as it represents the potential breakout point.
If DOGE successfully breaks out of this pattern, the price could target significant levels of $0.40, $0.48, and even extend to $0.65. These targets are based on historical resistance zones and Fibonacci retracement levels, offering a roadmap for potential price action in the coming days.
Is A Breakout Looming?
The broader crypto market’s positive reaction to the U.S. CPI report has provided the initial momentum for this breakout attempt. DOGE has surged more than 4% in the last 24 hours, demonstrating resilience despite overall market uncertainty. The volume profile suggests increasing interest from buyers at this price level, reinforcing the bullish sentiment.
Adding to the optimism, the upcoming inauguration of Donald Trump on January 20, known for his pro-crypto stance, could further bolster market sentiment. Trump’s administration’s support for blockchain innovation may act as an additional catalyst for DOGE’s price performance, alongside broader market movements.
With these favorable market conditions and upcoming events, DOGE appears well-positioned for a potential breakout, making the next few days critical for traders and investors.
Conclusion
Dogecoin is at a pivotal moment, with a bullish breakout potentially in sight. The combination of positive CPI data, favorable technical patterns, and macroeconomic factors like Trump’s pro-crypto stance creates a supportive environment for DOGE to rally.
If the bullish pennant breakout is confirmed, traders can expect DOGE to move toward key targets of $0.40, $0.48, and $0.65. However, if resistance holds, DOGE could face consolidation or retracement.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
