Dogecoin Forms Explosive Cup And Handle Pattern With $4 Target

Share This Post

Dogecoin (DOGE) is potentially forming cup and handle formation on the weekly chart. Crypto analyst David (@david_dogecoin) suggests that, if confirmed, Dogecoin could be targeting an ambitious price target of $4.

Dogecoin Cup And Handle Pattern

The first stage of this pattern, the cup, began taking shape when Dogecoin initially declined from its May 2021 all time high at $0.74. This downward movement led to an extended consolidation period, where the asset gradually formed a rounded bottom in the $0.05–$0.06 range. The curvature of the price action suggests a slow but steady shift in market sentiment, where selling pressure was gradually absorbed by buyers accumulating DOGE at lower levels.

Dogecoin cup and handle pattern

As time progressed, Dogecoin started to recover from this bottom, pushing back towards its December 2024 high at $0.48. The gradual and steady rise back to this high signals that bullish momentum has been building, with increasing interest from market participants.

After reaching the $0.48 resistance level, Dogecoin faced a rejection, leading to a moderate pullback. This decline formed the handle, a smaller downward retracement that typically precedes the final breakout. The handle in this setup is forming around the $0.14–$0.17 price zone, where the market is currently consolidating.

The handle serves as the last phase where weaker hands exit, and stronger buying interest gathers momentum before a decisive move higher. If Dogecoin successfully breaks out of the cup and handle pattern, the projected price target can be estimated using the measured move technique. This involves calculating the depth of the cup and adding that value to the breakout point. Based on this method, the expected target is around $4, according to the chart shared by analyst Kevin.

Critique: Why This Is Not A Classic Cup And Handle

A textbook cup and handle requires specific structural characteristics, including a rounded bottom and a shallow handle, forming near a prior all-time high or key resistance zone before a breakout. However, there are critical deviations in this analysis that cast doubt on its validity.

The decline from $0.74 (May 2021 ATH) to $0.05–$0.06 is too deep and prolonged to be considered a proper cup formation. Classic cup patterns typically form over weeks to months, not multiple years of extended downtrend.
The recovery from $0.05–$0.06 to $0.48 is not symmetrical with the initial drop, making the “rounded bottom” aspect of the cup questionable. Instead, the price action resembles a multi-year accumulation phase rather than a continuous rounding structure.

Moreover, the handle is forming too deep in the structure. A valid handle should develop near the rim (i.e., close to $0.48), but in this case, Dogecoin has retraced all the way down to $0.14–$0.17—which is a massive drop of over 65% from the supposed cup rim. A healthy handle should not drop below 50% of the cup’s depth, but here, it retraces nearly to the lower third of the structure, invalidating the classical pattern.

At press time, DOGE traded at $0.17.

Dogecoin price

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Open Interest Climbs 13% From Recent Low — Bull Run Restart?

After a torrid start to the week, the price of Bitcoin appears to be finally stabilizing and building some bullish momentum On Friday, March 14, the flagship cryptocurrency demonstrated this growing

ETF Weekly Recap: Bitcoin ETFs Lose Almost a Billion Dollars in 5th Successive Week of Outflows

Bitcoin ETFs experienced a net outflow of $9388 million, marking the fifth consecutive week of the outflow trend Similarly, ether ETFs also faced a net outflow of $17843 million, extending their

Is Bitcoin Peak In? This Data Suggests Otherwise, Analytics Firm Says

An analytics firm has explained how the data related to the stablecoins could hint at whether the Bitcoin market top is in or not Stablecoins Have Seen Their Market Cap Touch New Highs Recently In a

A data-driven look at the state of DeFi

The following is a guest post from Vincent Maliepaard, Marketing Director at IntoTheBlock DeFi has emerged as one of the most successful niches in the cryptocurrency industry, pioneering innovative

TRX Short Sellers Face $2M Liquidation, Will Bulls Step In?

The post TRX Short Sellers Face $2M Liquidation, Will Bulls Step In appeared first on Coinpedia Fintech News As the overall cryptocurrency market begins to recover, Tron (TRX) appears bullish, with

Bitcoin Reserve War: Congressman Fights Trump’s Crypto Plans

A Democrat lawmaker has opposed US President Donald Trump’s plan to increase the government’s Bitcoin holdings by creating a strategic reserve House Rep Gerald E Connolly of Virginia urged