Dogecoin forms a bullish "cup and handle" pattern, hinting at a major rally.
The breakout may target $1-$3, backed by RSI levels and Fibonacci extensions.
Dogecoin's market cap stands strong at $60.56B despite recent volume drops.
Dogecoin (DOGE) is showing signs of a significant rally against the US Dollar, with analysts suggesting a potential breakout. On the monthly chart, Dogecoin appears to be forming a classic "cup and handle" pattern, which is often viewed as a strong bullish continuation signal.
https://twitter.com/MikybullCrypto/status/1856695260178763823
Currently trading around $0.389, Dogecoin has seen a notable surge from its recent lows, breaking through key resistance levels.
The recent breakout above the established red resistance zone and Fibonacci extension levels indicate potential price targets around $0.93. If the bullish momentum holds, the chart suggests a potential rally, aligning with a projected 393% price increase.
Historical data shows that, back in 2020, Dogecoin rallied over 16,000% after surpassing the RSI 70 mark. This trend might repeat, with many analysts now eyeing this cycle's $1-$3 range.
Dogecoin's current market conditions reflect bullish sentiment, with multiple patterns reinforcing a possible upward move. The formation of an "Adam and Eve" double bottom and the breakout pattern seen in early 2021 add to the positive outlook. The Relative Strength Index (RSI) points upward, indicating strong buying momentum.
Source: Mikybull
The current trading activity shows Dogecoin at approximately $0.4125, reflecting a slight increase of 1.66% over the past 24 hours. Despite the positive price action, 24-hour trading volume has declined by nearly 23.87% to $20.54 billion.
Nonetheless, Dogecoin's market capitalization remains robust at $60.56 billion, with the fully diluted valuation also at $60.56 billion, given the circulating supply of 146.79 billion tokens.
The price movements over the last 24 hours indicate heightened volatility. After reaching a peak near $0.4129, Dogecoin dipped to around $0.39 before bouncing back. This fluctuation suggests market participants actively respond to broader crypto market shifts and potential catalysts.
Source: CoinMarketCap
The volume-to-market cap ratio of 34.36% highlights ongoing trading activity, even though the drop in volume points to a cooling period after recent gains.
