Dogecoin has broken out of a classic bullish chart formation: the Cup-with-Handle pattern. This move is crucial in the technical trajectory of DOGE. This is because it surged past a well-established resistance level, indicating a potential continuation of its uptrend. A trader and technical analyst shared a chart providing insight into the current structure. It has been quietly forming over the past few months.
The Cup-with-Handle pattern is a bullish continuation pattern that indicates the end of a period of consolidation. It also indicates the beginning of a sustained breakout. In Dogecoin’s case, the “cup” portion of the formation began to take shape in March. This was visible with a rounded bottom that reflects a long period of accumulation and stabilization. After hitting a low in mid-April, DOGE began to climb. The meme coin formed a symmetrical curve on the right side of the cup. This rounded base typically signifies steady recovery and growing market confidence.
Brief Decline Before a Pullback
The handle emerged in May as DOGE entered a brief downward channel, forming a controlled pullback just below the previous resistance zone. While some viewed this retracement as a sign of weakness, others recognized it as the final setup for a breakout. As expected with the Cup-with-Handle formation, DOGE surged through the upper boundary of the handle. It broke past the horizontal resistance line that had capped its previous attempts to rally.
The resistance zone was previously defined by the red horizontal band just below the $0.25 mark. However, it acted as a psychological barrier as well as a technical ceiling. Breaking above this level not only confirms the bullish formation but also paves the way for DOGE to reach higher resistance levels. Rising volume and a bullish candlestick structure validate the breakout.
This breakout also has implications for Dogecoin’s positioning within the altcoin market. While meme coins are often considered volatile and speculative, the technical clarity behind this pattern suggests that DOGE may be entering a more serious phase. Institutional investors may enter the market within the current structure. Momentum indicators, such as the RSI, are pointing upward but remain below extreme overbought levels. This suggests there is room for growth before reaching exhaustion.
Can DOGE Sustain This Momentum?
However, the key question now is whether DOGE can sustain this momentum. A successful retest of the previous resistance as new support would be a textbook confirmation of the breakout. It could potentially pave the way for DOGE to target $0.28 and beyond. Should the broader crypto market remain bullish, DOGE could ride the macro tailwinds to new local highs. On the other hand, a failure to hold above the breakout level could see the coin fall back into its previous consolidation range.
For now, though, the Cup-with-Handle breakout stands as a bullish milestone in Dogecoin’s 2025 chart history. Driven by technicals, community hype, or renewed risk-on sentiment, DOGE is once again capturing attention. Indeed, it has a pattern that suggests it might be more than just another meme rally.
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