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Dogecoin (DOGE) is exhibiting a classic cup-and-handle formation, a bullish technical pattern often associated with long-term accumulation before a major breakout. This pattern started taking shape after DOGE’s sharp decline from its all-time high in May 2021, forming a rounded bottom that extended into late 2023.
A breakout above the descending trendline in early 2024 saw Dogecoin surge to $0.2408 before retracing to $0.1934, marking a 19.28% pullback. This retracement could represent a retest of the breakout zone, a crucial step before further upward movement.
Key Resistance and Price Targets for Dogecoin
Dogecoin’s current price action highlights several key resistance levels that could shape its next move. The first major hurdle sits at $0.50, both a psychological and technical barrier. A breakout past this level could confirm a stronger bullish trend.
Beyond $0.50, DOGE’s next target is $0.75, aligning with previous support-turned-resistance zones from its 2021 rally. The final milestone sits at $1.00, a round-number level that could mark the beginning of a major price discovery phase if Dogecoin maintains upward momentum.
Some analysts speculate a long-term rally toward $5.00, though further confirmation is required.
Market Indicators and Trading Volume Trends
At the time of writing, Dogecoin trades at $0.1935, with a 24-hour trading volume of $2.71 billion. Over the past 24 hours, DOGE has declined by 11.59% and is down 5.70% for the week. Its market capitalization stands at $28.64 billion.
Technical indicators present mixed signals. The Relative Strength Index (RSI) at 34.74 suggests DOGE is nearing oversold territory, hinting at a potential rebound. Meanwhile, the MACD remains bearish, but its histogram is showing signs of selling pressure weakening.
Open interest has declined by 15.34% to $1.64 billion, and overall trading volume has dropped 30.22% to $4.77 billion, indicating a cooling period. However, options volume has surged 37.36%, signaling increased speculative positioning.
Bitwise Moves Forward with Dogecoin ETF Proposal
Investor speculation around DOGE has intensified following Bitwise Asset Management’s recent filing for a Dogecoin exchange-traded fund (ETF). The NYSE Arca submitted a 19b-4 proposal on March 3, seeking approval to list and trade shares of the ETF.
Structured as a Delaware statutory trust, the Bitwise Dogecoin ETF would allow institutional investors to gain exposure to DOGE without directly purchasing the asset. This development raises a critical question: Could the ETF fuel the next Dogecoin rally?
Also Read: NYSE Arca Files for Bitwise Dogecoin ETF – Will the SEC Approve the First DOGE ETF?
If DOGE holds above $0.19 and buying pressure increases, a move toward $0.21-$0.22 is likely. A breakdown below $0.18, however, could extend losses. With growing investor interest and potential institutional backing, Dogecoin’s future price trajectory remains a focal point for traders and analysts alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
