- Dogecoin price has continued rising this month.
- It has formed a cup-and-handle pattern, pointing to more gains this year.
- The rally is because of the ongoing crypto market gains.
Dogecoin price has pulled back in the past few days, moving from this month’s low of $0.1173 on May 6 to the current $0.1087. It remains up by over 24% from its lowest level in March, and has formed a cup-and-handle pattern, pointing to more gains in the near term.
Dogecoin Price Prediction: Technical Analysis
The daily chart reveals that the DOGE price bottomed at $0.0875, its lowest level in February and March this year. It was also the lowest swing in April this year.
At the same time, the token has formed a cup-and-handle pattern, whose lower side is at $0.0875 and the upper side at $0.1173, its highest point on February 15 and May 6 this year. A C&H pattern is one of the most common bullish continuation signs in technical analysis.
A closer look shows that the token also formed a double-bottom pattern at $0.087 and a neckline at $0.1042, its highest point in March this year
The coin has moved above the 50-day and 100-day Exponential Moving Averages (EMA). It has also jumped above the Supertrend indicator, meaning that bulls remain in control for now.
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Therefore, the double-bottom and the cup and handle pattern points to more gains, potentially to the next key resistance level at $0.1173. A move above that level will point to more gains, potentially to the key resistance level at $0.1565, its highest point in January this year.
However, watch out for the next key support level at $0.1042. A move below that price will point to more downside, potentially to the double-bottom level at $0.0875.
DOGE price chart | Source: TradingView
Dogecoin Benefiting From Broad Crypto Market Rally
The recent DOGE price rally is mostly because investors have embraced a risk-on sentiment that has pushed investors to risky assets like stocks and cryptocurrencies.
For example, data shows that the Crypto Fear and Greed Index moved to the neutral point at 50 from the year-to-date low of 10. The CNN Money Fear and Greed Index has jumped to the greed zone of 67.
Therefore, Dogecoin has jumped not because of its strong fundamentals, but because of the robust performance of the industry. Indeed, data shows that the spot DOGE ETF has not had some substantial inflows this year. The three funds added just $627k last week, up from $459k in the previous week.
Still, these inflows are much lower than those of other coins. For example, spot Bitcoin ETFs have added over $1.4 billion this month, while Ethereum have added $171 million this month. These funds now hold $13.7 million in assets after having $10.2 million in inflows. Dogecoin’s volume and futures open interest has remained under pressure this year.
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