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Dogecoin is signaling a major breakout with bullish patterns and potential ETF approval driving excitement.
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After months of consolidation, the memecoin is showing signs of maturing, breaking through key resistance levels and forming a bullish pattern.
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Analysts claim that a confirmed breakout of the “Cup & Handle” pattern could see DOGE on the verge of a significant rally, a matter underscored by a recent quote from crypto analyst Daniel Ramsay.
Dogecoin’s recent breakout and potential ETF approval have analysts buzzing; is a price surge on the horizon for this leading memecoin?
Dogecoin signals a bullish trend
Crypto analyst Daniel Ramsay has highlighted a highly bullish setup for Dogecoin on the monthly chart, pointing to a confirmed breakout of the classic “Cup & Handle” formation. This pattern, often associated with long-term uptrends, suggests that DOGE could be on the verge of a major rally.
Source: X
Additionally, Ramsay notes the presence of the “Three White Soldiers” candlestick pattern — another strong bullish indicator. While a short-term retest of the key zone is possible, the overall outlook remains optimistic, with technical signals aligning for a significant upward move.
Retest or rally? Key levels to watch
As Dogecoin hovers around the $0.30 mark, traders are debating whether the price will continue its rally or retest lower support levels before another move upward. Recent price action indicates a steady decline from its local highs near $0.45, suggesting a pullback to key support levels around $0.26 or even $0.22 could be in play.
Source: TradingView
The worst-case scenario would be a break below these levels, which could invalidate the bullish setup. However, if buyers step in at these zones, DOGE could rebound and resume its uptrend. A decisive close above $0.35 would signal renewed bullish momentum, paving the way for another breakout.
Will Dogecoin ETFs push DOGE further?
Grayscale’s recent filing for a Dogecoin ETF has ignited optimism among investors, with some speculating that DOGE could rally to $1 or even $3.80. Historically, the approval of crypto ETFs has often led to significant market movements.
For instance, the launch of the first Bitcoin ETF in January 2024 attracted over $39 billion in investments, contributing to Bitcoin’s price surge. Similarly, the introduction of Ethereum ETFs correlated with notable price increases for ETH.
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If a Dogecoin ETF gains approval, it could serve as a catalyst for substantial capital inflows, potentially driving DOGE’s price to new highs. However, it’s essential to consider that market reactions can vary, and past ETF launches have also been followed by price corrections.
Conclusion
Overall, Dogecoin’s current technical setup and the potential for ETF approval create a compelling narrative for traders and investors alike. While the market may face short-term volatility, the longer-term outlook appears optimistic. Potential catalysts like the Dogecoin ETF and bullish chart patterns may pave the way for sustained upward movement, but caution is advised amid market fluctuations.
