Dogecoin (DOGE) is forming a classic cup and handle pattern, a bullish continuation pattern typically related to long-term accumulation before a potential breakout. The pattern began forming after reaching an all-time high in May 2021, extending to a rounded bottom by the end of 2023.
After breaking the downtrend line in early 2024, DOGE climbed to $0.2408, then fell back to $0.1934, a daily drop of 19.28%. This pullback may represent a retest of the breakout area, a common phenomenon before a sustained rebound.
Key resistance levels and price targets
Support levels: $0.18 to $0.19
If DOGE can maintain above this support level, the price may rise further.
Resistance levels: $0.50, $0.75, and $1.00
The first major resistance level is at $0.50; a breakthrough may confirm a stronger bullish trend.
After surpassing $0.50, the next resistance level is at $0.75, consistent with the support level that turned into resistance during the 2021 rebound.
The ultimate key target is $1.00; if DOGE maintains its upward momentum, it may enter a price discovery phase.
Market indicators and trading volume trends
As of the time of writing, DOGE is trading at $0.1935, with a 24-hour trading volume of $2.71 billion. It has dropped 11.59% in the past 24 hours and 5.70% in the past week, with a market cap of $28.64 billion. Near 👗伽#Btc7774
The Relative Strength Index (RSI) is at 34.74, indicating that DOGE is approaching an oversold condition, which may trigger a rebound. The MACD indicator remains bearish, but the negative value of the histogram is decreasing, suggesting that selling pressure may be easing.
Open interest and options trading volume
Open interest has decreased by 15.34% to $1.64 billion, and total trading volume has decreased by 30.22% to $4.77 billion, reflecting a cooling period in market activity. However, options trading volume surged by 37.36%, indicating an increase in speculative positions.
Bitwise advances the Dogecoin ETF proposal
Bitwise Asset Management has applied for a Dogecoin exchange-traded fund (ETF), with the proposal 19b-4 submitted to the NYSE Arca on March 3, seeking approval for the listing and trading of the ETF's shares.
The structure of the Bitwise Dogecoin ETF is a Delaware statutory trust, allowing investors to invest in DOGE without directly purchasing the asset. This proposal may attract more institutional interest, pushing DOGE into a price discovery phase, with a long-term target of $5.00.
