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Dogecoin forms a cup and handle pattern on the monthly chart, signaling a potential bullish continuation.
Dogecoin price has shown signs of recovery after dipping to approximately $0.153 on April 20. At the time of reporting, the asset traded near $0.162, marking a 4.3% gain over the past 24 hours.
Additionally, the broader 14-day performance reflects a notable 17.3% gain, indicating renewed bullish momentum since the earlier downward pressure.
Dogecoin Cup and Handle Pattern Developing
A recent technical analysis posted by TradingView user CobraVanguard has brought renewed focus to Dogecoin’s long-term chart structure. The analyst presented a potential “cup and handle” pattern forming on the monthly chart, a setup generally associated with bullish continuation.
The cup began with Dogecoin’s parabolic rise toward $0.80, followed by a long, rounded correction phase between June 2021 and the first half of 2022. After bottoming out, the price gradually began forming the right side of the cup with a prolonged accumulation period.
From the cup’s bottom at $0.0468, DOGE posted an increase of around $0.41546, or 733.06%, labeled as AB leg. Following this rise, a pullback emerged, signaling the beginning of a handle formation.
According to the chart, if the pattern holds, another CD leg completing the previous one could lead Dogecoin to $0.88036. This would see Dogecoin surge by over 89% from the $0.468 resistance zone. Meanwhile, the OG meme coin would also surge approximately 443.44% from the current price to the analyst’s target.
Deeper Pullback Before Rally?
A separate outlook from TradingView analyst SwallowAcademy presented a more cautious scenario. Analyzing the DOGE/USDT daily chart, the analyst highlighted past volatility, including a rally to nearly $0.23 in early 2024, followed by a retracement to $0.09.
Based on this, SwallowAcademy projected a 40% drop before DOGE would find strong support, with a potential 400% rebound to $0.45 from that level. However, this prediction has yet to materialize, as Dogecoin rose over 5% two days later.
DOGE Rising User Engagement
In addition to price and chart analysis, blockchain data reveals strong growth in Dogecoin’s on-chain metrics. Notably, new addresses increased by 102.40% over the past seven days.
Active addresses also surged by 111.32%, while zero balance addresses grew by 155.40%. These numbers represent a clear spike in user activity and wallet creation.
This increase in address activity typically signals a rise in user participation, rather than speculative trading alone. The surge in transaction-related metrics often aligns with periods of market expansion.