Dogecoin price remains in a tight range, 53% below its highest point in November, but a forming cup and handle pattern points to an eventual surge to $0.8630 and beyond.
Dogecoin (DOGE) token was trading at $0.2200 on Sunday, 68% above its lowest level in November. It is still the biggest meme coin in crypto, with over $32 billion in market capitalization.
Dogecoin price technical analysis points to a rebound
The weekly chart shows that the DOGE price peaked at $0.7390 in 2021 when Elon Musk was pumping it. It then plunged and bottomed at $0.048 in June 2022.
The coin has slowly formed a cup-and-handle pattern whose upper side is at $0.4522, its highest point in November last year and May 2021.
A C&H pattern has two parts. The cup section has a rounded bottom and horizontal support. The handle section has either a pullback or some consolidation.
In Dogecoin’s case, the handle part has been a pullback from a high of $0.4522 in November to $0.1295.
A bullish breakout will happen when the DOGE price rises above the upper side of the cup at $0.4522.
The profit target in a Cup and Handle pattern is determined by measuring the depth of the cup and projecting that same distance upward from the cup’s upper rim. In this case, the cup has a depth of 92%, giving the target price at $0.8630, up by 295% from the current level.
Potential catalysts for DOGE price
Dogecoin price rebound has potential catalysts. First, as the chart below shows, there are signs that whales are accumulating the coin. Those holding between 100 million and 1 billion coins now hold 26.5 billion coins, up from 22.8 in January. Similarly, those holding between 10 million and 100 million coins have increased their positions to 23.8 billion.
The other potential catalyst will be the approval of the four DOGE ETFs by the Securities and Exchange Commission. Companies by Bitwise, Grayscale, 21Shares, and Rex Shares have all applied for these funds.
Finally, Dogecoin price will explode higher if Bitcoin (BTC) continues its strong bull run as many experts, including those from BlackRock, Bitwise, and Ark Invest, have predicted.
