Dogecoin (DOGE) recently experienced a 4.97% price decline, trading around $0.2200 despite a notable 20.57% gain over the past month. The dip occurred at a key resistance level, which has historically triggered price retracements on multiple occasions. Technical analysis reveals DOGE has formed a 'cup and handle' pattern on the weekly chart, with the cup’s upper boundary at $0.4522 and a projected potential price target of $0.8630, representing a 285% increase if a breakout materializes.
Market activity shows strong buying pressure during the decline, with traders purchasing approximately $16.91 million worth of DOGE and moving coins from exchanges to private wallets, signaling long-term holding intentions. Additionally, whale wallets holding between 100 million and 1 billion coins increased their holdings from 22.8 billion to 26.5 billion DOGE since January, indicating accumulation by institutional or high-net-worth investors.
Further supporting bullish prospects, four companies including Bitwise, Grayscale, 21Shares, and Rex Shares have filed applications with the SEC to launch DOGE ETFs, which could act as significant catalysts for price appreciation.
Short-term price behavior remains cautious as DOGE hovers above $0.20 support, with a crucial descending trend line resistance acting as a make-or-break level. On the 960-minute chart, strong demand continues to build, and a reverse head and shoulders pattern on the 60-minute chart adds to bullish momentum. However, breaking and holding above key resistance levels is essential to confirming the continuation of the upward trend that began recently.
