- Dogecoin price activates the cup-with-handle pattern today with trade above the handle high of $0.288.
- DOGE is on pace to close with the fourth consecutive positive month, demonstrating a newfound commitment and emotion for the meme token.
- The cup high of $0.291 proves to be tough resistance for the rally continuation.
Dogecoin price orchestrated a 28.14% gain on August 7 and climbed over 40% at the August 8 high of $0.288, busting the tight range that defined DOGE through late July and the beginning of August. The resulting improvement in the price structure, taking the form of a cup-with-handle base, has created the opportunity for higher prices and the beginning of a new cyclical uptrend.
Dogecoin price symmetry takes a hit
The test of the June 25 high of $0.291 in August was a milestone for Dogecoin price, confirming a break from the multi-month DOGE downtrend with a decisive close above the 50-day simple moving average (SMA) at $0.216 and establishing the right side of the cup-with-handle base.
The measured move of the DOGE cup-with-handle base is 40%, suggesting a price target of $0.406. The target falls short of the 50% retracement of the May-July correction at $0.457 and the June high of $0.463.
Today’s attempted DOGE breakout above the handle high of $0.288 and the June 25 high of $0.291 was met with selling pressure, driving Dogecoin price back into the handle. It is not a surprise due to the lack of symmetry in the duration of the handle relative to the cup. Simply, the DOGE breakout came too soon, preventing the price compression generated by the August 7-8 spike higher from being removed.
Moving forward, the DOGE breakout now has four sessions to close above today’s high of $0.295. If not, it would increase the probabilities for a deeper correction, potentially to the flattening 50-day SMA at $0.216. The moving average currently aligns closely with the highs of the preceding range.
DOGE/USD daily chart
Improving the potential for the DOGE breakout is the bullish Golden Cross pattern on the six-hour chart that was triggered on August 10 when the 50 six-hour SMA crossed above the 200 six-hour SMA. The previous Golden Cross occurred at the beginning of April before Dogecoin price ignited to the upside.
DOGE/USD 6-hour chart
The bullish narrative would be defeated by a daily close below the 50-day SMA. Dogecoin price would immediately fall to the 200-day SMA at $0.205 or the May 19 low of $0.195. If DOGE logs a daily close below the August 5 low of $0.181, the outlook for the cryptocurrency turns notably bearish and projects a test of the July low of $0.159.
Here, FXStreet's analysts evaluate where DOGE could be heading next as it seems poised to breakout.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.