Dogecoin Forms Bullish Pattern, Possible Breakout Ahead
Key Takeaways
Dogecoin (DOGE) is showing a bullish cup-and-handle pattern, indicating a potential price breakout. Analysts identify resistance levels at $0.50, $0.75, and $1.00. Additionally, Bitwise has filed for a Dogecoin ETF, which could attract institutional interest.
Dogecoin: Technical Analysis and Price Development
The cup-and-handle pattern is a classic bullish formation, often signaling long-term accumulation before a breakout. DOGE formed this pattern after declining from its all-time high in May 2021. A breakout above the descending trendline in early 2024 led to a price increase to $0.2408 before DOGE fell back to $0.1934 – a decline of 19.28%.
This pullback could serve as a confirmation of the breakout zone before an upward continuation. If Dogecoin holds support in the $0.18 to $0.19 range, momentum could build toward higher price targets.
Key Resistance Levels and Price Targets
The current price structure reveals several critical resistance levels:
– **$0.50**: A psychological and technical resistance. A breakout could confirm a stronger upward trend.
– **$0.75**: A former support level from the 2021 rally, now acting as resistance.
– **$1.00**: A round number that could represent a significant milestone.
Some analysts even consider a long-term increase to $5.00 possible, though further confirmations are needed.
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Market Indicators and Trading Volume
At the time of publication, the DOGE price stood at $0.1935. The 24-hour trading volume was $2.71 billion, while the market capitalization reached $28.64 billion.
– **Relative Strength Index (RSI)**: At 34.74, DOGE is approaching oversold conditions, which could favor a rebound.
– **MACD Indicator**: Still bearish, but the histogram shows weakening negative momentum, indicating a slowdown in selling pressure.
If DOGE remains above $0.19 and volume increases, a recovery toward $0.21 to $0.22 could follow. A drop below $0.18, however, could lead to further losses.
Bitwise Files for Dogecoin ETF
Speculation around Dogecoin has increased after Bitwise Asset Management filed for a Dogecoin ETF. NYSE Arca submitted a 19b-4 proposal on March 3 to allow the ETF’s listing and trading.
The Bitwise Dogecoin ETF is structured as a Delaware trust, allowing investors to gain exposure to DOGE without directly purchasing the cryptocurrency. This could attract institutional capital and potentially trigger a new rally.
Our Assessment
Dogecoin is showing a promising technical pattern that suggests a potential price increase. The resistance levels at $0.50, $0.75, and $1.00 will be crucial for further development. The proposed ETF could generate additional institutional interest. However, DOGE remains volatile, and investors should closely monitor market indicators.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.21 |
| 24h % | 4.86 % |
| 7d % | 0.82 % |
| 30d % | -18.95 % |
| 60d % | -45.96 % |
| 1y % | 25.34 % |
| Market Cap | $31,220,016,596.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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