The price of Dogecoin has encountered significant selling pressure this week, dropping 7% over the past seven days. Currently, DOGE is trading just above $0.13 following a sharp pullback of approximately 5% in the last 24 hours. Despite this downturn, analysts remain optimistic about the overall market structure, indicating that a critical resistance level exists at $0.50. A decisive breakout above this price point is essential for Dogecoin to target $1.88.
On the three-week chart, Dogecoin has been tracing a large triangle pattern since its peak in 2021. The upper trendline has restricted every rally, while the ascending lower trendline has consistently supported major dips. Presently, DOGE is testing this support level once again, raising questions about its next move.
According to insights from Altcoin Pioneers, this setup aligns with a multi-year Cup and Handle pattern, where the cup formation is complete, and the handle has developed through moderate pullbacks. This week”s price drop does not alter the broader outlook; instead, it indicates a period of calm consolidation. Lower trading volume and a reset in momentum further support this analysis.
The Relative Strength Index (RSI) on higher timeframes has returned to the pivotal 50 level, resembling conditions seen before the strong rally in 2021. Additionally, the Moving Average Convergence Divergence (MACD) is nearing a bullish crossover on both weekly and monthly charts, often signaling the inception of a new upward trend. The key neckline to observe remains between $0.48 and $0.50, a zone that has been tested multiple times. A successful breakout could confirm the Cup and Handle formation, potentially propelling DOGE toward $1.88.
According to technical analysis by TAtrader Alan, Dogecoin appears poised for a bullish shift. An inverted head and shoulders pattern has formed on the four-hour chart, which traders typically interpret as a sign of potential reversal. This pattern strengthens the possibility of a momentum shift to the upside if DOGE can break through the main resistance level. A clean move past this barrier may lead to a significant rally.
In addition to technical developments, real-world adoption is also on the rise for Dogecoin. Recently, officials in Argentina approved the use of DOGE for tax payments, while Alternative Airlines has started accepting the token for flight bookings. These advancements underscore a gradual acceptance of Dogecoin in everyday transactions, marking steady progress for the meme coin.
As market watchers keep a close eye on Dogecoin”s performance, the critical resistance at $0.50 will be pivotal. If breached, it could set in motion a series of upward movements, potentially transforming the current landscape for DOGE holders.
