In tandem with this news, Dogecoin (DOGE) continues to experience a spectacular price rally. In that time, it surged nearly 7% to hit $0.181 as of March 25. En route to that high, at its intraday peak the memecoin traded as high as $0.189, which is its highest price in nearly a fortnight. This price spike comes during a larger altcoin market rally. Though it seems like easing trade war tensions and increased activity in the dogecoin futures market are pushing this momentum. The bullish momentum is playing out against a backdrop of a clear bear flag pattern, indicating downside risks.
Technical Analysis and Bear Flag Pattern
DOGE forming a bear flag pattern This bearish technical formation typically indicates an immediate continuation of the downtrend. The latest Dogecoin bounce came after a test of the pattern’s lowest, downward-sloping trendline as support – a typical occurrence within this pattern. At the time of writing on March 25, Dogecoin had been coiling within the flag formation. The immediate technical downside target for DOGE price is near $0.117, about -35% from current DOGE price levels.
A strong breakout above the flag’s upper trendline would probably invalidate the bearish setup. This may push DOGE’s price to cap the 50-day EMA, the red wave around $0.214. This push has created a very bullish and extremely positive alternative scenario.
Foundation's DOGE Reserve and Institutional Interest
On March 24, the Dogecoin Foundation announced the creation of the “Official Dogecoin Reserve.” This project is intended to improve DOGE’s long-term price stability and increase its overall credibility. As a political move, the Foundation is making a very strategic purchase of DOGE at this time. Traders are on the lookout for evidence of institutional investment into the memecoin sector, and anticipated approval of spot Dogecoin ETFs in the US is driving DOGE prices higher today.
Speculation is picking up on the Dogecoin Futures market. As seen in the DOGE open interest (OI) chart, the DOGE open interest (OI) and DOGE funding rates are both rising.
Market Dynamics and Future Outlook
Dogecoin price performance today looks to be largely based on its persisting bear flag formation. This rally follows a larger trend across the entire alt coin market, spurred by some relief from trade war tensions.
The interplay between technical patterns, institutional interest, and broader market sentiment will likely dictate Dogecoin's price trajectory in the coming weeks. Traders need to keep an eye on the key levels listed above to help assess a breakout or breakdown scenario.
