The current state of the Dogecoin price has seen a significant decline of over -57% from its recent high on December 8, when it reached $0.4843. However, there are signs that a potential bottom may be in sight. A technical analysis shared on X, Rose Premium Signals (@VipRoseTr) has pointed out a bullish setup for Dogecoin (DOGE), based on a classic “Cup & Handle” pattern.
The analysis suggests that the DOGE price could experience one final drop before finding support near the $0.16896 level. This level represents the base of a potential Cup & Handle pattern, which is characterized by a rounded “cup” followed by a smaller consolidation or “handle.” The cup phase typically indicates the market’s attempt to establish a bottom, while the handle phase usually involves a brief pullback or sideways movement before a potential breakout.
The key zone for DOGE’s next move is around $0.29124. If the price manages to surpass this level, it could confirm the formation of the Cup & Handle pattern and potentially trigger a strong upward movement. Traders may interpret a decisive daily or weekly close above $0.29124 as a signal of confirmation, leading to a surge in bullish momentum.
According to Rose Premium Signals, DOGE has the potential to reach the $0.50 – $0.60 range if the Cup & Handle pattern unfolds as anticipated. This target aligns with historical trading zones and psychological levels that often attract traders’ attention. The analysis also hints at the possibility of further upside beyond $0.60 if positive sentiment continues to strengthen.
The recent surge in memecoin popularity has brought attention to a multitude of smaller tokens, overshadowing the original memecoin, Dogecoin. However, the tide may be turning, with the focus possibly shifting back to DOGE as traders seek more established assets. A breakout with sustained momentum could rekindle interest from both retail and institutional investors, propelling DOGE towards higher resistance levels and confirming the potential Cup & Handle pattern.
At the time of writing, DOGE is trading at $0.207. The charts and analysis provided by Rose Premium Signals suggest a critical moment for DOGE, with the potential for a significant price movement in the near future.
In conclusion, Dogecoin’s price action is indicating the possibility of a bullish trend reversal, with the potential for a substantial upward movement if key levels are breached. Traders and investors are advised to monitor the price closely and consider the implications of the Cup & Handle pattern on DOGE’s future trajectory.