Dogecoin Signals Rebound with Cup and Handle Pattern… “Time to End the Downtrend”

▲ Dogecoin (DOGE)

Dogecoin (DOGE) has halted its recent decline and is reportedly preparing for a strong rebound as it forms a bullish Cup and Handle pattern, a technical analysis signal indicating upward momentum.

According to crypto-focused media outlet The Crypto Basic on Feb. 19 (local time), Dogecoin is facing short-term downward pressure. However, chart analysis suggests that the token has entered the final stage of completing a Cup and Handle pattern, signaling a positive outlook. Technical analysts predict that if Dogecoin maintains its current buying pressure and breaks through resistance in the handle zone, it could enter a full-fledged price recovery phase.

Dogecoin is currently showing active volatility within a narrow range between $0.097 and $0.102. The Cup and Handle pattern is typically interpreted as a bullish continuation signal, where a rounding bottom is formed and energy accumulates near a previous high before breaking through resistance. Analyst Trader Tardigrade noted that Dogecoin has already established a rounded bottom near $0.08 and is now building the handle near the $0.11 rim area, weighing the timing of a potential breakout.

One technical indicator, the Parabolic SAR (Stop and Reverse), shows dots positioned below the current price candles, suggesting that buyers are beginning to gain short-term control. This is interpreted as evidence that Dogecoin is attempting either a trend reversal or at least a relief rally. However, the negative directional index (-DI) stands at 37.6, significantly higher than the positive directional index (+DI) at 18.8, indicating that selling pressure still holds influence. For a sustained rally, a golden cross—where the +DI crosses above the -DI—will be necessary.

Dogecoin’s immediate support lies in the $0.085 to $0.090 range, where buying interest previously emerged. If this level breaks down, losses could deepen toward $0.080. On the upside, the token must first break through the primary resistance between $0.111 and $0.117, and ultimately surpass the key resistance wall at $0.125—the previous breakdown level—to enable a rally toward new highs. The Average Directional Index (ADX) currently hovers around 25, indicating that the prior downtrend is gradually weakening.

Ultimately, Dogecoin stands at a critical juncture, with the completion of a technical pattern and emerging trend reversal signals potentially aligning to trigger a new upward rally. Experts believe that if Dogecoin successfully breaks through resistance in the handle zone, it could gain unprecedented bullish momentum. Investors are advised to focus less on short-term fluctuations and instead closely monitor whether the $0.11 resistance level is breached, along with changes in trading volume, to formulate their strategies.

*Disclaimer: This article is for investment reference only and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted for informational purposes only.*