Dogecoin (DOGE) is currently trading around $0.10, and traders are hungry for signs that could catalyze a breakout. After a period of relatively sideways movement, the technical patterns emerging on DOGE’s chart are grabbing attention once more.
A key development is the formation of a cup-and-handle pattern appearing on the daily chart. This classical bullish setup typically leads to upward price movement after the handle phase completes, and the phenomenon is currently taking shape.
DOGE recently recorded a modest gain of about 3% over the past 24 hours; while minor, it signals potential renewed interest among buyers. The cup-and-handle structure reveals a rounded bottom, demonstrating a steady buildup of support before a potential surge.
The critical phase of the formation is underway with the handle emerging. If buyers maintain momentum, a breakout above $0.12 could be the initial step toward higher targets. Beyond $0.12, observers will focus on the $0.15 resistance level that has historically stalled rallies, with a move past this offering a clear path to $0.20—a remarkable doubling from its current position.
Momentum Indicators Reflect a Neutral Stance
Looking closer at the momentum indicators, the Relative Strength Index (RSI) is hovering around 52, placing it squarely in neutral territory. This suggests that DOGE is neither overbought nor oversold, with recent slight upward movements indicating a budding interest among buyers.
Meanwhile, the Chaikin Money Flow index is at approximately 0.04, suggesting light accumulation. This indicates a gradual return to buying pressure after an extended quiet phase. DOGE has been testing a descending trendline for six consecutive days, maintaining support above it and thereby affirming a bullish structures in the market.
However, analysts caution that current momentum appears weak. Without a notable increase in trading volume—often a precursor to significant breakouts—any upward shifts may be short-lived.
Market Conditions Favor a DOGE Upsurge
Overall market conditions look supportive as the total cryptocurrency market cap has surged by 1.88%, reaching $2.35 trillion recently, driven by inflows into spot ETFs totaling around $9.05 million, which increases institutional interest in the sector.
Other meme coins, such as SHIB, PEPE, and BONK, are also seeing gains, pushing the collective meme coin market cap to around $35.3 billion with a daily increase of 2.3%. On-chain analytics show growing whale activity and an uptick in active addresses, suggestive of an overall shift in sentiment toward these assets.
For DOGE, the critical downside line is currently located at $0.10. A close below this level could open the door to testing the next major support at $0.09. As of now, DOGE is trading just shy of the $0.10 mark, awaiting a volume-backed confirmation to determine the next directional move.
