Dogecoin Price Breakout Imminent as Technical Analysis Points to Bullish Move

Dogecoin's price has been stagnant in recent weeks, but technical analysis suggests that the token may be on the verge of a breakout. The cup-and-handle formation on the chart is a classic bullish pattern that often precedes a significant price increase. If buyers can maintain control and push the price above $0.12, analysts predict that Dogecoin could surge towards $0.20, representing a gain of over 100% from current levels.

The Relative Strength Index (RSI) is sitting near 52, indicating neutral territory, while the Chaikin Money Flow reading is around 0.04, signifying light accumulation. The token has also been testing a descending trendline for six consecutive candles without breaking below it, maintaining a bullish structure. However, the lack of strong conviction and low trading volume raises concerns that any upward move may be short-lived.

Broader market conditions are supportive, with the total crypto market cap rising 1.88% to $2.35 trillion in the past day. Spot ETF inflows added a layer of institutional interest to the market, while on-chain data shows whale accumulation and growing active addresses. These early signals suggest that sentiment may be shifting towards a more bullish outlook.