Dogecoin (DOGE) Forms Cup and Handle Pattern on Monthly Chart, Targeting $0.88

Dogecoin price has shown signs of recovery after dipping to approximately $0.153 on April 20. At the time of reporting, the asset traded at $0.162, marking a 4.3% gain over the past 24 hours.

Moreover, the broader 14-day performance highlights a notable 17.3% gain, highlighting renewed bullish momentum since the earlier downward pressure.

Dogecoin Cup and Handle Pattern

A recent technical analysis from TradingView user CobraVanguard brought attention to Dogecoin’s long-term chart structure. The analyst highlighted a potential “cup and handle” pattern forming on the monthly chart, a setup generally linked to bullish continuation.

The cup began with Dogecoin’s parabolic rise toward $0.80, followed by a long, rounded correction phase between June 2021 and the first half of 2022. After reaching the lows, the price gradually began forming the right side of the cup with a prolonged accumulation period.

From the cup’s bottom at $0.0468, DOGE posted an increase of around $0.41546, or 733.06%, labeled as AB leg. Following this rise, a pullback emerged, signaling the beginning of a handle formation.

According to the chart, if the pattern holds, another CD leg completing the previous one could lead Dogecoin to $0.88036. This would see Dogecoin surge by over 89% from the $0.468 resistance zone.

Moreover, the OG meme coin would also increase by approximately 443.44% from the current price to the analyst’s target.

Dogecoin Price Analysis: Deeper Pullback Before Rally?

A separate outlook by TradingView analyst SwallowAcademy presented a more cautious scenario. Analyzing the DOGE/USDT daily chart, the analyst noted past volatility, including a rally to nearly $0.23 in early 2024, followed by a retracement to $0.09.

According to this analysis, a 40% drop from this level would see Dogecoin find strong support, setting the stage for a 400% rebound to $0.45. However, this prediction has yet to materialize, as Dogecoin rose over 5% two days later.

In addition to price and chart analysis, blockchain data reveals strong growth in Dogecoin’s on-chain metrics. Notably, new addresses increased by 102.40% over the past seven days.

Active addresses also surged by 111.32%, while zero balance addresses grew by 155.40%. These numbers represent a clear spike in user activity and wallet creation.

This increase in address activity typically signals an rise in user participation, rather than speculative trading. The surge in transaction-related metrics often coincides with periods of market expansion.