Dogecoin's (DOGE) current price action has once again brought the coin into focus amid active market demand. After its recent vertical surge, DOGE moved into a narrow range, forming a Bullish Flag pattern on the hourly chart.
Prominent crypto analyst Ali Martinez believes this pattern could increase the token's price by one-third.
Dogecoin (DOGE) forms a bullish flag pattern on the hourly chart. Source: Ali Martinez via X.comWhat happens next for DOGE: Two scenarios
DOGE is currently trading within a narrow range of $0.087–$0.088, and Martinez divides the possible next move into two clear scenarios:
- Bullish scenario: An hourly candle close above the $0.090 resistance level would officially activate the pattern. This would open the way toward the nearest target at $0.115, representing a clean upside of around 30%. Above $0.090, historical sell-order density is virtually nonexistent all the way to $0.177, clearing the way for a rapid price move.
- Bearish scenario: A break below $0.081 would completely invalidate the bullish flag setup. In this case, sellers would regain control, and the price could correct toward the long-term bottom of the broader descending wedge in the $0.056–$0.060 range.
The main technical factor working against a deeper decline is the strong on-chain foundation. The $0.081 level has seen enormous trading activity, with around 30 billion DOGE previously changing hands there.
This massive amount of accumulated capital acts as a strong support zone capable of holding the price during local market pullbacks.
Nevertheless, the broader picture continues to show resistance on higher time frames. The local flag is developing within a larger descending wedge on the daily chart. DOGE recently attempted to break through the psychological barrier at $0.10 but encountered resistance from the 200-day EMA at $0.095.
The final days of August will determine whether enough volume enters the order book to trigger the breakout or whether Dogecoin has entered a prolonged consolidation phase within the broader range.