Dogecoin Price Eyes Explosive Rally Above $5

Dogecoin (DOGE) traders are closely watching for a potential reclaim of its monthly bullish pennant to spark a sharp upward reversal. According to Trader Tardigrade, the DOGE price has slipped below the lower boundary of the pattern, creating a potentially bearish signal.

However, if the price moves back inside the pennant, it could prove false and trap sellers. This would create conditions for a powerful reversal as bullish momentum returns across markets.

The confirmation of a reclaim would reinforce the case for seeing the current collapse as being engineered to drive away weaker hands rather than setting a trend lower for the DOGE price.

The squeeze on sellers would intensify short covering and boost the price of Dogecoin by a significant amount above the $5 level.