- Dogecoin has formed a classic bullish cup-and-handle pattern ready for another upswing.
- The support at the 50 SMA on the 4-hour chart needs to be protected to keep the uptrend secure.
- The IOMAP sheds light on the challenging resistance ahead of DOGE, which can delay the uptrend.
Dogecoin holds above key support after correcting from the all-time high at $ 0.088. The ‘Meme Coin’ trades at $ 0.058 as the bulls struggle to regain control. Peter Brandt, a well-known trader, suggested in his latest analysis that the DOGE is poised for a massive 70% rebound to $ 0.143.
Dogecoin technical levels are bullish
DOGE formed a classic cup-and-handle pattern on the 4-hour chart. The technical pattern is viewed as a bullish signal with the right side going through a phase of low trading volume. The cup-and-handle pattern can form over both short and long periods of time.
With the correct timing, this pattern offers excellent entry-level positions. It is confirmed when the handle reaches maturity, which is characterized by low trading volume. A breakout comes into the picture as the volume begins to rise, causing a retest of the previous high.
DOGE / USD 4 hour chart
The same 4 hour chart shows Dogecoin trading above the 100 Simple Moving Average (SMA). With this support intact, bulls have an opportunity to focus on breaking the 50 SMA short-term resistance. Trading above this critical level could push the rally to highs above $ 0.1 and set Dogecoin on its way towards $ 0.143.
Look at the other side of the fence
Developed by IntoTheBlock, a leading on-chain analytics platform, the IOMAP model shows increasing selling pressures, especially in the $ 0.058-0.06 region. Almost 36,000 addresses had bought around 5.6 billion DOGE here. Cutting through this level could be a difficult task.
Dogecoin IOMAP Chart
On the flip side, there is robust support to ensure losses are stopped. For example, the most significant congestion zone for buyers is between $ 0.053 and $ 0.055. Almost 1,700 addresses had previously bought 3.4 billion DOGE here. The model generally shows that consolidation takes precedence before the aforementioned breakout comes into the picture.