Due to ETF speculation, Dogecoin may break through $5, forming a bullish cup and handle pattern!

  • The cup and handle pattern for Dogecoin suggests a breakout, with resistance levels at $0.50, $0.75, and $1.00.

  • Bitwise's application for a Dogecoin ETF has sparked speculation about institutional interest and potential price increases.

Dogecoin [DOGE] Technical Analysis: Bullish cup and handle pattern forming, potential breakout imminent

Dogecoin (DOGE) is currently forming a classic cup and handle pattern, a bullish continuation pattern that typically occurs after a long accumulation phase, indicating potential breakout opportunities. This pattern began to form after DOGE reached an all-time high in May 2021 and subsequently entered a rounded bottom phase that continues until the end of 2023.

At the beginning of 2024, DOGE successfully broke through the descending trend line, with the price once climbing to $0.2408. However, the price later fell back to $0.1934, with a daily drop of 19.28%. This pullback may be a retest of the breakout area, a common phenomenon before a sustained price rebound. If DOGE can stabilize around this level and regain upward momentum, it may lay the groundwork for subsequent breakouts.

If DOGE can successfully hold the current support area and break through the resistance level of the cup and handle pattern, further upside potential may follow.

If Dogecoin maintains above the support levels of $0.18 to $0.19, the price may further increase.

Key resistance levels and price targets for Dogecoin

The current price structure clearly outlines several key resistance levels for Dogecoin's future movement. The primary focus is on the psychological and technical dual barrier of $0.50; if it can effectively break through this level, it will be a strong confirmation of the bullish trend, potentially leading Dogecoin to higher price levels.

Once crossed above $0.50, the next important resistance level is $0.75, which was a solid support for Dogecoin during its rebound in 2021 and may now turn into strong resistance.

Ultimately, all eyes will be on the $1.00 milestone, and if Dogecoin can maintain its upward momentum, breaking through this milestone will mark the entry into a new stage of price discovery and open up a new value perception.

Moreover, some analysts have proposed bolder predictions, believing that Dogecoin's potential goes far beyond this, with prices expected to rise further to $5.00, but this outlook still requires more market signals for validation.

As of the time of writing, Dogecoin is trading at $0.1935, with a 24-hour trading volume of $2.71 billion.

The asset has dropped 11.59% in the past 24 hours and 5.70% in the past week, with a market cap of $28.64 billion.

The Relative Strength Index (RSI) is at 34.74, indicating that DOGE is close to being oversold. If buying pressure increases, this could lead to a rebound. Meanwhile, the MACD indicator remains bearish, but the negative values of the histogram are decreasing, suggesting that selling pressure may be easing.

If DOGE can maintain above $0.19 with increased trading volume, it is expected to rebound to the price range of $0.21-$0.22. Conversely, if DOGE breaks below the key support level of $0.18, its downtrend may continue.

Meanwhile, open interest has decreased by 15.34% to $1.64 billion, while total trading volume has also dropped by 30.22% to $4.77 billion, reflecting a cooling trend in market activity. However, it is noteworthy that options trading volume has surged by 37.36%, which may indicate an increase in speculative positions in the market, with some investors employing more aggressive trading strategies through options.

Bitwise submits Dogecoin ETF proposal

After Bitwise Asset Management submitted an application for a Dogecoin exchange-traded fund (ETF), market interest and speculation surrounding Dogecoin significantly increased. The NYSE Arca officially submitted the 19b-4 proposal on March 3, aiming to seek regulatory approval for the listing and trading of the ETF.

The Bitwise Dogecoin ETF is designed as a statutory trust structure in Delaware, providing investors with a new way to indirectly invest in DOGE without directly holding the cryptocurrency. If this proposal is successful, it is expected to further stimulate institutional investor interest, although some analysts remain cautious, believing that its actual effects and market impact are yet to be observed.

"Can this ETF drive the next wave of Dogecoin's rise?"

If momentum continues, DOGE may enter a price discovery phase, with a long-term target of $5.00.