Dogecoin is forming a 'cup-and-handle' pattern, signaling a potential significant market breakout. We examine current technical indicators and rumors about a future ETF.
Dogecoin's Price Action and Key Resistance Levels
Following a breakout above a descending trendline in early 2024, Dogecoin reached $0.2408 and then retraced 19.28% to $0.1934. Analysts suggest this pullback may represent a retest of the breakout zone. If Dogecoin maintains support in the $0.18–$0.19 range, momentum could build toward higher levels. Three major resistance levels are $0.50, $0.75, and $1.00. Long-term projections point to a potential move toward $5.00.
Market Indicators and Trading Volume Trends
At publication time, Dogecoin is trading at $0.1935, with a trading volume of $2.71 billion. The Relative Strength Index (RSI) at 34.74 indicates DOGE is approaching oversold conditions, which may trigger a rebound. The MACD indicator remains bearish, but the histogram shows decreasing selling pressure. Open interest declined by 15.34% to $1.64 billion, and overall trading volume is down 30.22% to $4.77 billion, reflecting a temporary market cooldown. However, options volume has surged 37.36%, suggesting increased speculative positioning.
Bitwise’s ETF Proposal for Dogecoin Sparks Interest
Investor interest in Dogecoin has intensified following Bitwise Asset Management's ETF application. On March 3, NYSE Arca submitted a 19b-4 proposal seeking approval to list and trade shares of the Bitwise Dogecoin ETF. With the rise of crypto-based ETFs, speculation is growing over whether this proposal could be a catalyst for DOGE’s next bull run, with $5.00 as a long-term target.
The 'cup-and-handle' formation and the potential appearance of a Dogecoin ETF create promising prospects for the cryptocurrency's growth. Investors should closely watch key resistance levels and trading volumes.
