- Dogecoin continues to find support around the handle height of a mug with a handle.
- DOGE closed last week with the best weekly performance since the beginning of May.
- The Dogecoin price rally since the July low was highlighted by three prominent positive days, each topping 10%.
Dogecoin price orchestrated a 15.61% rise on August 15 to confirm the original breakout of a cup-and-handle pattern on August 12. The spike faced selling pressure, pushing DOGE to the handle high of $ 0.288 before hitting a new bid. Nonetheless, the digital coin failed to regain the August 16 high of $ 0.355, making the meme token a base-pattern basis that could be the catalyst for a resumption of the evolving rally.
The Dogecoin price creates a new opportunity for latecomers
Despite the recent 80% correction and an 80% correction in January, Dogecoin price is still well on the way to posting six positive quarters in a row. It’s been a roller coaster ride for DOGE investors, but the creation of a mug with a handle cemented the potential for the altcoin to sell for higher prices using a rare but powerful base-to-base pattern.
The measured move of the original Cup-with-Griff base is 45% and calls for a DOGE profit target of $ 0.417 while breaking the resistance defined by the 38.2% Fibonacci retracement of the May-July correction. The target misses the 50% retracement at $ 0.457 and the tactically important June high at $ 0.463.
To benefit from another Dogecoin price rally, speculators should target the August 16 high of $ 0.355 as the new entry price with a daily close below the handle high of $ 0.288 as a stop. Triggering the base-base pattern reinforces the uptrend set in motion by the 28.14% rise on August 7th and improves the potential for DOGE to break the resistance created by the 50% retracement and the June high is sketched.
A break above the June high of $ 0.463, a level reinforced by the mid-May highs, puts Dogecoin price in a favorable position around the confluence of the 61.8% retracement at $ 0.529 with a range of DOGE highs printed in mid-May before the May 19th crash.
DOGE / USD daily chart
If Dogecoin price does not activate the base-on-base pattern, the stop will remain a daily close below the rising 50-day SMA at $ 0.229. Alternatively, if DOGE triggers the base-to-base pattern, the stop will be raised to the handle high at $ 0.288.
Dogecoin price initially broke from the base of the cup with handle on Aug 12, but quickly reversed grip again before confirming the breakout on Aug 15 with a 15.61% surge. However, DOGE withdrew again and tested the grip he had held so far.
The propensity to zig when it should be zig has presented DOGE with a new challenge, but if a base-to-base breakout occurs, the altcoin will be prepared to rally further than originally forecast.
Here, FXStreet analysts are evaluating where DOGE could go next as it appears poised to move forward.
