Dogecoin (DOGE) prices are showing an upward trend after crossing key resistance levels. Analysis indicates further potential price increases.
Dogecoin Trendline Breakout
On the weekly chart, Dogecoin price broke above a long-term downward trend line, which had served as dynamic resistance since late 2023. This breakout followed a sequence of higher lows and indicated increasing buyer interest. As of now, the meme coin price trades above the former resistance at $0.18, signaling a possible trend reversal. Trading volume has also increased, confirming the market direction shift. The next key resistance levels are at $0.27 and $0.33, which have previously served as turning points.
Historical Price Cycles of Dogecoin
Looking at historical Dogecoin prices reveals a pattern of accumulation followed by significant bullish movements. Analyst Bitcoincensus pointed to previous cycles in 2017 and 2021 that displayed a similar structure. In 2017, the meme token rallied over 5,800%, while in 2021, it increased by 21,000%. These movements featured sideways action followed by breakouts and upward trends. The current structure of Dogecoin may reflect these historical patterns, as it appears to be nearing the conclusion of its formation.
Cup and Handle Structure in DOGE/BTC Pair
Meanwhile, the DOGE/BTC pair chart has formed a Cup and Handle structure, typically associated with upward continuation. This chart includes a rounded bottom, the cup, followed by a slight pullback, the handle, which is the final consolidation before a breakout. A breakout from this pattern could indicate an increase in Dogecoin's value relative to Bitcoin, even if Bitcoin stays in a range. If DOGE/BTC manages to sustain a move above its neckline, further capital rotation into the meme coin could amplify its momentum towards the $0.33 level.
Dogecoin price analysis reveals multiple positive signals, including breakouts of key levels and historical growth percentages, suggesting potential further strengthening of this cryptocurrency's position.
