Following the recent horizontal movement in the Dogecoin price, the “cup and handle” formation, which is frequently encountered in technical analysis, came to the fore. If this structure is completed, expectations that the price may attack the $0.12 region are noteworthy. The focus of investors is whether Dogecoin, which is currently balanced at $ 0.09, will gain a new upward momentum.
What does the cup and handle formation mean?
This formation, which stands out in technical analysis, is generally considered a strong indicator for the continuation of the upward movement. A closely watched weekly chart shows the price rebounding from a prolonged decline, forming a broad “U” shape, followed by a brief pause to form a “handle.” What this image means is that the price may make a stronger jump if it breaks through the resistance line after consolidating. According to analysts, with the completion of this structure, the upper resistance levels of $ 0.12 and above in Dogecoin can be tested. However, whether the potential movement will occur or not is closely related not only to the appearance of the formation, but also to whether the price can actually break this resistance.
“The price finally showed a meaningful market structure break after the long-term downward pressure. Despite this movement indicating that the sellers have lost control, it is too early to say that the trend has fully returned,” commenting market observers, stating that the cautious atmosphere continues.
In addition, in analyzes strengthened with Fibonacci retracement and extension levels, the reliability of the formation increases; It is reminded that in the bullish scenario, targets above $ 0.73 and $ 2.86 are also theoretically possible. However, the main determinant will be whether the trend is actually confirmed in the market.
Market structure and EMA 200 barrier
Dogecoin’s structural appearance in the market has given the first upward signal, as analysts call it. After a long-standing downward trend, exceeding an important level indicates that buyers have stepped into the market. Still, it is stated that the market is waiting for confirmation for a strong rally.
The main technical obstacle that stands out here is the 200-day exponential moving average (EMA 200) level. This indicator is considered a reference in the long-term direction, and this limit must clearly be exceeded for Dogecoin to have a permanent upward potential. Analyzes point out that if the price can pass this resistance point and maintain it, we may see a steeper rise. Otherwise, it is emphasized that the price may fluctuate within a narrower range for a while and new upward attempts may be postponed.
Investors are waiting for the breakout
At this stage, several conditions are expected to be met for Dogecoin to reach its target of $0.12. The most critical step; Clearly exceeding the resistance zone and staying above the 200 EMA level. Additionally, general market conditions should also support this move.
Investors are closely watching whether these technical setups in the market will lead to an upward wave or just a new horizontal process. A strong confirmation is expected for the slight rise currently seen in the market to strengthen and the start of a broad-based rally. CryptoAppsy According to data, Dogecoin is trading at approximately $ 0.09886 at the time of publication and has increased by 4.34 percent in the last 24 hours.
