Dogecoin price will test $0.1 as this chart pattern can be restored.
Dogecoin struggles below its key moving averages, showing a weak short-term trend. A cup and handle pattern is forming, hinting that the resistance could be broken if broken. Support is found near $0.08, with significant upside needed for a further move higher.
Dogecoin is hovering over the $0.10 mark after a shocking month that saw its price drop by over 20%.
The popular meme coin has struggled to keep pace, trading volumes are showing signs of weakness.
Even so, there are hints of a possible rebound in the charts.
Technical analysis
Looking at the moving averages, DOGE is currently below the 5-day, 10-day and 20-day moving averages.
This usually indicates that the short-term trend is weak.
Traders often see prices move above these averages.
Right now, resistance is in the $0.105–$0.107 range.
Rest above this level will be an important sign for those hoping to recover. The MACD indicator is also showing mixed signals.
The MACD line has moved above the signal line, although both are negative, and the histogram has turned positive, indicating that buyers are starting to move in after a period of inactivity.
However, the volume is still moderate. It looks for a strong breakout from the recent close to $33 million in trading activity.
Support remains firm around $0.08, which previously served as a recovery point.
This level has prevented further sharp declines and may continue to hold the price if bearish pressure returns.
The cup and handle pattern points to a possible upside down
On the daily chart, Dogecoin is forming a familiar Cup and Handle pattern.
The cup fell to $0.08 and rallied to $0.11.
The handle is now forming near the top of the cup, solidifying below the stopper.
This pattern usually precedes a breakout when the price moves above the holding.
If Dogecoin can clear this resistance, it can push it to higher levels, buying the optimism among traders.
Chart patterns like these are closely watched because they combine both support and momentum signals.
They show where traders are willing to buy and where sellers are willing to enter.
In Dogecoin's case, the pattern suggests there is still potential for a reversal, but it won't happen without strong buying interest.
Volume and speed will be key to making the cut. Traders are waiting for both to lift before offering more.
Even with these early signs of cruelty, it is important to be careful.
The market has been volatile, and DOGE has lost significant value over the past year. Short-term gains are possible, but the overall trend is weak.
