Bitcoin Struggles for Recovery as Dogecoin Gains Momentum

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The leading cryptocurrency Bitcoin (BTC) is struggling to maintain its comeback from the $60,000 level while the crypto market operates in uncertainty. There is limited growth in the overall supply of many major altcoins, but this is not the case with Dogecoin. What lies ahead for the popular meme token in the coming days?

DOGE Price Analysis

Dogecoin has recently rebounded from the 61.8% Fibonacci retracement level, achieving approximately a 40% increase in four days, reaching the current trading level of $0.17. Will this momentum continue to surpass $0.22? The daily time frame analysis could reveal that the Dogecoin price correction is resonating precisely between two approaching trend lines, which could indicate the formation of a flag pattern.

The indicated chart pattern is often seen within an established uptrend as it may suggest a temporary pullback for buyers to regain strength. Midweek, the DOGE price witnessed a significant entry, resulting in a rise from $0.122 to $0.177. This increase was likely influenced by Elon Musk’s financial service X Payments successfully expanding its operational footprint by acquiring money transmission licenses in Illinois, New Mexico, and Oregon.

Critical Formation in DOGE

The acquisition of these licenses has reignited discussions about the potential inclusion of cryptocurrencies like Dogecoin (DOGE) into the social network’s ecosystem. An 11.6% gain in the cryptocurrency during the day could see the DOGE price challenge the upper trend line of the flag formation. A break above the structure could signal a resumption of the recovery, providing suitable support for buyers.

A post-breakout rally could potentially increase the Dogecoin price by 46%, reaching $0.26 and recording a 48.6% potential gain. Consequently, while uncertainty prevails in the crypto market, Dogecoin’s price has risen 40% to $0.17, influenced by Elon Musk’s progress with X Payments and the impact of license acquisitions. Moreover, experts believe that the formation of a flag pattern carries rally potential.