Alex Dudov
Dogecoin (DOGE) has entered a crucial technical phase that has traders buzzing. The popular memecoin is completing a textbook cup-and-handle formation, one of the most reliable bullish patterns in technical analysis. With DOGE now pushing against the $0.18 resistance zone once again, the next few sessions could determine whether this setup launches into a sustained rally or needs more time to build momentum.
A Classic Bullish Structure Puts DOGE Near a Key Decision Point
Dogecoin is at an important crossroads as it completes a well-defined cup-and-handle formation.
This pattern is widely recognized among traders for marking the transition from bearish exhaustion to bullish continuation, particularly when the handle forms right beneath a major resistance level. With DOGE now pressing into the $0.18 zone again, market attention is building.
Cup and Handle Structure Clearly Visible on the DOGE Chart
The chart reveals Dogecoin carving out a deep, rounded "cup" between November 3 and 7, with price dipping toward roughly $0.155 before steadily recovering. This curve reflects a shift from heavy selling on the left side to gradual accumulation on the right. The return to the $0.18 neckline is marked by a strong green candle, bringing DOGE back to resistance. After touching this neckline, Dogecoin forms a compact, rounded "handle" consisting of several small candles and a modest dip to around $0.172, showing reduced volatility and weakening sell pressure. The final green candle reclaiming the neckline demonstrates renewed buying strength exactly where a handle typically completes.
Key Price Zones Reflected in the Chart
- $0.18 Resistance (Neckline): This remains the critical level. Multiple touches confirm it as the zone DOGE must clear to activate the pattern.
- $0.165–$0.17 Handle Support: DOGE maintains higher lows within this structure, keeping the cup-and-handle pattern fully intact.
- Symmetry Enhances Pattern Reliability: Both the cup and handle display smooth, balanced curvature, reinforcing the formation's credibility.
- Momentum Recovery After a Deep Pullback: The shape of the cup signals a gradual shift from selling pressure to accumulation.
Why Dogecoin Is Strengthening Now
Dogecoin is benefiting from improving sentiment across crypto markets, with traders rotating into mid-cap assets as volatility returns. Historically, DOGE often responds strongly when major cryptocurrencies stabilize or trend upward. The current structure suggests traders are preparing for a potential continuation move, relying on one of technical analysis's most recognized bullish patterns.
Alex Dudov
