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Dogecoin (doge) may be cup and lever formation on the weekly graph. Crypto analyst David (@david_dogecoin) suggest That, if confirmed, Dogecoin could focus on an ambitious price target of $ 4.
Dogecoin Cup and Hand Pattern
The first phase of this pattern, the cup, began to take shape when Dogecoin initially fell high at $ 0.74 from his May 2021. This downward movement led to an extended consolidation period, whereby it actively gradually formed a rounded soil in the range of $ 0.05 – $ 0.06. The curvature of the price promotion suggests a slow but steady shift in market sentiment, whereby the sales pressure was gradually absorbed by buyers who collected Doge at lower levels.
As time progressed, Dogecoin began to restore from this soil and push back to the High of December 2024 at $ 0.48. The gradual and steady rise in these high signals that Bullish Momentum has built up, with increasing interest from market participants.
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After reaching the resistance level of $ 0.48, Dogecoin was confronted with a rejection, which led to a moderate withdrawal. This decline was the handle, a smaller downward retracement that usually precedes the last outbreak. The handle in this setup forms around the price zone of $ 0.14 – $ 0.17, where the market is currently consolidating.
The handle serves as the final phase where weaker hands go, and stronger buying interest collects the momentum before a decisive movement is higher. If Dogecoin breaks successfully from the cup and the handling pattern, the projected price target can be estimated using the measured relocation technology. This includes calculating the depth of the cup and adding that value to the breakout point. Based on this method, the expected goal is about $ 4, according to the graph shared by analyst Kevin.
Criticism: Why this is not a classic cup and handle
A textbook cup and handle requires specific structural characteristics, including a rounded soil and a shallow handle, which forms near an earlier all time high or important resistance zone before an outbreak. However, there are critical deviations in this analysis that have made doubts about its validity.
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The fall from $ 0.74 (May 2021 ATH) to $ 0.05 – $ 0.06 is too deep and extended to be considered a correct cup formation. Classic cup patterns usually form in weeks to months, not several years of extended downward trend.
The recovery of $ 0.05 – $ 0.06 to $ 0.48 is not symmetrical with the initial decrease, making the “rounded soil” aspect of the cup doubtful. Instead, the price action seems to be a multi -year battery phase instead of a continuous completion structure.
Moreover, the handle forms too deep in the structure. A valid handle must develop at the edge (ie, almost $ 0.48), but in this case Dogecoin is completely withdrawn to $ 0.14 – $ 0.17 – which is a huge decrease of more than 65% of the supposed cup edge. A healthy handle may not fall below 50% of the depth of the cup, but here it almost comes back to the bottom third of the structure, making the classic pattern invalid.
At the time of the press, Doge acted at $ 0.17.
Featured image made with dall.e, graph of tradingview.com
Credit : www.newsbtc.com
