Dogecoin (DOGE), has fueled renewed optimism in the market, with analysts predicting a potential surge toward $1. Following a recovery from recent lows, Dogecoin has displayed a remarkable 17.3% gain over the past two weeks, signaling bullish momentum. A technical pattern on the monthly chart, known as the “cup and handle,” has been identified, which could lead to significant price growth if it continues to form as expected.

The Cup and Handle Pattern: A Bullish Signal

According to a detailed analysis by TradingView user CobraVanguard, Dogecoin is currently developing a cup and handle pattern on its monthly chart. This pattern, often associated with bullish continuation, begins with a sharp rise followed by a rounded correction phase, before the price rises again to form the handle. For Dogecoin, the pattern began with its parabolic rise to $0.80 in 2021, followed by a prolonged correction phase between mid-2021 and early 2022.

After reaching a bottom of $0.0468, Dogecoin made an impressive 733% gain, rising to $0.468. The current handle phase appears to be forming as the price consolidates around the $0.162 mark, signaling a possible continuation of this upward trend.

Target Price and Potential Gains

Should the cup and handle pattern fully materialize, CobraVanguard predicts Dogecoin could reach $0.88 in the short term, which would represent an 89% increase from the current resistance level of $0.468. From its present price of $0.162, the target would represent a 443% gain, pushing Dogecoin toward new highs and potentially approaching the $1 mark.

A Cautious Outlook: Possible Deeper Pullback

Not all analysts share the same bullish outlook for Dogecoin. Another analysis from SwallowAcademy on TradingView presented a more cautious view, noting the significant volatility of Dogecoin’s price in the past. SwallowAcademy pointed out that Dogecoin had experienced rallies followed by sharp pullbacks, such as the rally to nearly $0.23 in early 2024, followed by a steep decline to $0.09.

According to SwallowAcademy, Dogecoin could face a 40% pullback before it finds support, with a potential for a 400% rebound to around $0.45. While this scenario has yet to materialize, the analyst’s prediction highlights the potential risks of price fluctuations in the volatile crypto market.

Rising User Engagement Signals Stronger Fundamentals

Beyond technical analysis, Dogecoin has seen significant growth in its on-chain metrics, indicating stronger user engagement. In the past week, the number of new addresses on the Dogecoin network surged by 102.40%, while active addresses increased by 111.32%. Additionally, zero-balance addresses grew by 155.40%, signaling that more users are joining the Dogecoin ecosystem and actively engaging with the network.

This increase in activity is often a positive indicator for the long-term health of a cryptocurrency, suggesting that Dogecoin’s growing user base may support its price in the coming months. Unlike speculative trading, which can lead to price volatility, this uptick in wallet creation and transactions could signal sustained growth and adoption.

Conclusion

Dogecoin’s price is showing promising signs of recovery, driven by the formation of a cup and handle pattern and increasing user engagement. While some analysts predict a significant price surge toward $1, others caution about potential pullbacks and volatility. Regardless of the short-term price movements, Dogecoin’s growing adoption and strong on-chain metrics suggest a bullish outlook for the coin in the long run.

As the market continues to evolve, Dogecoin’s price will likely depend on how well it can maintain its momentum and whether it can break through key resistance levels. For now, the technical indicators and rising user engagement paint an optimistic picture for Dogecoin’s future.