Dogecoin’s Cup & Handle Formation: DOGE Eyes Potential Bullish Breakout Above $0.30

Dogecoin’s recent price decline could have an upside, this due to its formation of a classic “Cup & Handle” pattern.

This chart formation is regarded as a precursor to bullish moves in financial markets. The “cup” phase reflects a market attempting to find a bottom, and the “handle” phase typically represents a brief pullback before the price gathers enough strength to break higher. For DOGE, the crucial level to watch is around $0.16, which could mark the base of this formation.

The Cup and Handle Pattern Signals a Potential Bullish Rally

The trend suggests that if DOGE can break above the $0.29124 resistance level, then it could be a catalyst for a massive price rally. That would be a clear sign of a bull reversal, as a break from a well-defined Cup & Handle pattern tends to yield quick upward momentum.

A breakout above $0.29124 could propel Dogecoin toward the $0.50–$0.60 range, with the potential to reclaim its meme coin dominance if momentum sustains. Source: VipRoseTr via X

Analysts are eyeing this crucial price level, anticipating that DOGE will hit its historical price targets of $0.50 to $0.60 if the breakout is successful. The levels are historically significant and are likely to catch traders’ and investors’ attention.

Dogecoin nears a key reversal zone, testing $0.16896 support in a potential Cup & Handle setup. Source: VipRoseTr via X

Whale Accumulation Amid Bearish Momentum

While technical analysis supports a breakout, on-chain metrics take a more conservative view. Whales have been accumulating during the price fall of DOGE over the past days, accumulating a massive 530 million DOGE. Whale activity is generally bullish, yet one needs to realize that their purchasing power can be used for creating prices or absorbing selling pressure rather than driving long-term growth.

Whales accumulated over 530 million DOGE in the past 72 hours, seizing the dip. Source: Ali Martinez via X

However, with this momentum, Dogecoin is nonetheless in a downtrend. The token is trading below key technical levels, like the 200-day Exponential Moving Average (EMA), which means that the sentiment of the larger market is still bearish.

DOGE’s open interest (OI) has also declined considerably from $5.25 billion to $1.79 billion, reflecting lower trader interest. This suggests that most investors are either leaving DOGE or waiting for a more defined trend to set in before they get back into the market.

Dogecoin’s Price Floor: A Critical Test at $0.20

As Dogecoin’s price falls, it now has important support at $0.20, which is now serving as an important floor for the coin. The level has become important following a 50% decline from DOGE Q4 high. DOGE’s challenge now is whether it can hold this support or if a bigger correction is imminent. If the price cannot hold above $0.20, another fall would be expected, which may test lower levels.

Dogecoin (DOGE) tests critical support at $0.20. Source: B4RH4M on TradingView

Network growth is also a key consideration of whether DOGE will succeed in maintaining its support level of $0.20. The latest figures report a sharp drop in the opening of new DOGE addresses, with new wallets falling from 1.29 million in November to just 31,000 recently. Such a drop in network activity implies that the demand for DOGE is on the decline, something that may deter its short-term recovery. If the trend continues, bearish pressure will spread to additional selling and breaking the $0.20 support level.

Market Sentiment and Broader Implications for Dogecoin

Market sentiment has been bearish on Dogecoin, as evidenced by a precipitous decline in meme coin prices across the board. The meme universe has lost $15 billion in total value over the past week, with DOGE accounting for $8 billion of that loss. This broader market pullback has put further pressure on DOGE, making it more difficult for the asset to stage a recovery. While the broader crypto market remains volatile, DOGE’s ability to maintain its price floors will be influenced by internal dynamics and external market forces.

One glimmer of hope, Elon Musk’s DOGE program is starting to have an impact in the U.S. If DOGE can save American taxpayer money and win the hearts and minds of American people, that would help Dogecoin. Elon Musk went on Joe Rogan on Friday to make his case. Watch it below.

Watch – Elon Musk Talks Doge on Joe Rogan

Dogecoin (DOGE) price was holding at $0.20 support, down 4.74% in the last 24 hours at press time. Source: Brave New Coin

Dogecoin’s future price direction is largely dependent on a combination of factors such as whale activity, technicals, and overall sentiment. Although the Cup & Handle pattern suggests a bull run, declining demand and decreasing market participation would be a spoiler. A deeper correction is in store if DOGE fails to hold key support prices or overall sentiment keeps going south. Traders will need to watch closely the $0.20 level and network activity to decide DOGE’s future direction.