Dogecoin (DOGE) Cup and Handle Pattern Signals a Potential Surge Toward $1

Dogecoin (DOGE), has fueled renewed optimism in the market, with analysts predicting a potential surge toward $1.

Dogecoin (CRYPTO: DOGE) has recently displayed signs of renewed optimism, with analysts identifying a potential technical pattern that could propel the coin toward $1.

Following a recovery from recent lows, Dogecoin has shown a 17.3% gain over the past two weeks, signaling bullish momentum.

What Happened: A TradingView user, who identifies as CobraVanguard, noted the formation of a cup and handle pattern on Dogecoin’s monthly chart. This pattern, often associated with bullish continuation, begins with a sharp rise, followed by a rounded correction phase, before the price rises again to form the handle.

For Dogecoin, the pattern started with its parabolic rise to $0.80 in 2021, followed by a prolonged correction phase from mid-2021 to early 2022. After reaching a bottom of $0.468, Dogecoin experienced an impressive 733% gain, rallying to $0.468. The current handle phase appears to be forming as the price consolidates around the $0.162 mark.

According to the analysis, the cup and handle pattern could complete in the short term as the price recovers from the 0.382 Fibonacci level. If it continues to form as expected, it could lead to a significant breakout.

After encountering resistance at the $0.468, which coincides with the 0.382 Fibonacci retracement level from the 2021 high, the price is expected to bounce back and continue forming the handle.

From the recent swing low of $0.09, Dogecoin has already experienced a 179% price increase. If the cup and handle pattern plays out fully, the analysis predicts that Dogecoin could reach $0.88. This would be a 443% gain from its present price of $0.162 and 89% from the 0.382 Fibonacci resistance at $0.468.

At the time of writing, Dogecoin is trading at $0.162.

Another Level Of Analysis: A Different Perspective

Another TradingView analyst, who uses the username SwallowAcademy, presented a more cautious view on Dogecoin, highlighting its significant volatility.

The analyst pointed out that Dogecoin had experienced several rallies, which were later met with sharp pullbacks. For instance, Dogecoin experienced a rally to nearly $0.23 in early 2024, but it was later sold off quickly, and the candle closed at $0.09.

According to SwallowAcademy’s analysis, Dogecoin could still face a 40% pullback from the 0.382 Fibonacci level before it finds support at the 0.5 Fibonacci level. From this level, the analyst predicts a 400% rebound, pushing Dogecoin to around $0.45.

This scenario would materialize if the bulls fail to hold the 0.382 Fibonacci level and the bears succeed in pushing the price lower. However, this analysis does not necessarily reflect the final outcome and depends on how the market reacts in the coming days.

Why It’s Important: Technical patterns, like the cup and handle, are often used by traders to identify potential trends and trading opportunities. However, it’s crucial to note that these patterns are not foolproof and can be subjective.

Despite the recent price recovery, Dogecoin has seen even stronger growth in its on-chain metrics, which indicates broader user engagement. In the past week alone, the number of new addresses on the Dogecoin network surged by 102.40%, while active addresses increased by 111.32%. Additionally, zero-balance addresses witnessed a 155.40% growth.

This signals that more users are joining the Dogecoin ecosystem and engaging with the network.

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