Dogecoin Market Cap Tests Multi-Year Ceiling, Long-Term Momentum Still Intact
Dogecoin’s higher-time-frame construction is beginning to look constructive once more. In a technical evaluation posted on X, crypto analyst EtherNasyonaL famous that Dogecoin’s market cap has accomplished a construct, and momentum is prepared, pointing to a cup-and-handle breakout retest breakout on the month-to-month market-cap chart.
The chart he shared reveals Dogecoin’s market cap hovering just below $30 billion, using above its 25-month shifting common with a mild collection of upper lows that has been growing for the reason that 2022 bear market base.
Cup-And-Handle Breakout With A Convincing Retest
The chart shared by EtherNasyonaL appears to be like at a cup-and-handle construction that has been growing on Dogecoin’s market cap chart for a number of years. The cup portion stretches throughout 2022 and 2023, a protracted and gradual restoration section following Dogecoin’s blow-off peak in the 2021 bull market.
The deal with is a narrowing consolidation beneath a descending resistance trendline that capped each try at restoration all through the 2022/2023 bear market. Eventually, that resistance line was damaged with a clear upward transfer in late 2024, confirming the primary official breakout from the multi-year downtrend.
However, what makes this setup fascinating is the profitable retest of that very same resistance line, now became help, the place value motion briefly dipped earlier than bouncing once more. This retest occurred mid-October, when the Dogecoin crashed to $0.15 very briefly.
The retest confirmed the breakout’s legitimacy, exhibiting that Dogecoin merchants defended the brand new help zone fairly than permitting one other breakdown. This sort of retest is understood in technical evaluation to result in giant directional strikes, particularly on greater timeframes the place fewer false indicators happen. EtherNasyonaL’s chart implies that Dogecoin has accomplished its construct section that lays the muse for the following upward leg in its market cap.
Dogecoin Market Cap. Source: @EtherNasyonaL on X
Rising Bottoms And MA25 Support Strengthen Bullish Structure
Another necessary factor of EtherNasyonaL’s evaluation lies within the constant sample of upper lows seen on the chart. Dogecoin’s market cap has shaped a rising base since mid-2023, the place every correction has ended above the earlier one.
Equally necessary is the 25-month shifting common (MA25) that runs beneath the candles. This indicator has acted as a dynamic help stage for a lot of Dogecoin’s higher-time-frame construction. EtherNasyonaL famous this indicator’s position because the pattern spine by declaring that this help has “continued to carry the worth.”
As it stands, Dogecoin is now trading well above this moving average. As lengthy because the market cap stays above it, Dogecoin’s construction will proceed to keep up its bullish integrity. Should momentum proceed to construct because the MACD line turns upward, because the chart suggests, the situations may align for Dogecoin’s subsequent growth section. The subsequent growth section may take Dogecoin’s market cap above $100 billion, as projected within the chart above.
At the time of writing, Dogecoin is buying and selling at $0.20, with a market cap of $29.82 billion.
Featured picture from Unsplash, chart from TradingView
