Dogecoin (CRYPTO: DOGE) is showing signs of a potential breakout as it forms a classic cup-shaped recovery pattern, one analyst noted.

This formation, spotted on the 4-hour chart, is being closely tracked by crypto analyst BitGuru, who views the structure as a strong indicator of renewed bullish momentum.

Currently, DOGE is trading above a key support level at $0.17299, a zone that could serve as the launchpad for the next leg up.

"Dogecoin is stabilizing above a key support at $0.17299. If this level holds, we're likely heading toward a fresh breakout above $0.1850," BitGuru stated.

Technical analysis of the chart reveals historical resistance at $0.20576, with prior rallies stalling at $0.17945 and $0.18028. Following a steep drop that saw prices hit a low of $0.13009, Dogecoin began a gradual recovery, culminating in the current rounded base — a pattern the analyst labeled a "bullish beauty."

Support zones are established at $0.15217 and $0.16661. The successful defense of the $0.17299 level suggests the possibility of a fresh breakout toward $0.1850 and beyond.

Dogecoin: A Broader Perspective

Another analyst, Whales_Crypto_Trading, highlighted a broader trend. On the 1-week chart, Dogecoin appears to have formed a cup and handle pattern—a widely recognized setup that often signals a continuation of bullish movement.

Dogecoin is now in the process of testing a critical resistance level at $0.18, an area that has historically limited any further gains.

This resistance plays a crucial role in determining the next move. If it breaks and the cryptocurrency manages to sustain itself above it, analysts believe a wave of buying interest could follow.

This scenario would likely push Dogecoin to uncharted short-term highs and validate the larger bullish pattern taking shape. As the market keenly observes, the main focus lies on whether enough momentum exists for a clear breakout above this resistance.

If the momentum continues, this could propel Dogecoin towards $0.50, then $0.73, and potentially even touch the anticipated $1 mark. These targets align with old resistance zones where sellers previously intervened. Breaking those levels would mark a substantial recovery from Dogecoin’s recent consolidation.

Relative Strength Index

From a technical perspective, momentum indicators are showing signs of support. The Relative Strength Index (RSI) stands at 59.81, below the overbought threshold of 70. This figure suggests that Dogecoin has room to rise further without immediately triggering major selling pressure.

The RSI's steady ascent from earlier levels in the 40s also indicates increasing interest from investors.

The Moving Average Convergence Divergence (MACD) is also displaying a bullish trend. The MACD line is above the signal line, and the histogram continues to widen, a characteristic of increasing strength in buying activity.

This divergence signals that Dogecoin may be able to maintain its upward trajectory, supported by a strong trend rather than just a momentary bounce.

With both the RSI and MACD showing positive momentum, the current breakout does not appear to be a fluke. Instead, these signals point to a genuine trend with potential for further gains.

If Dogecoin manages to hold onto its support and breaks through resistance, the climb toward $0.50 and higher seems plausible.