A potential cup and handle pattern forming on Dogecoin’s weekly chart has sparked intense debate in the crypto community, with analysts divided over an ambitious $4 price target. Recent whale accumulation of $298M in DOGE adds further intrigue to this technical setup.
Breaking Down the Cup and Handle Formation
The pattern began taking shape following DOGE’s May 2021 all-time high of $0.74, with the ‘cup’ forming through an extended consolidation period around $0.05-$0.06. This accumulation phase has shown increasing buyer interest, culminating in a recovery toward December 2024’s $0.48 level.
Technical Analysis Breakdown
- Cup depth: $0.74 to $0.05 (93% decline)
- Current handle formation: $0.14-$0.17 range
- Key resistance level: $0.48
- Projected target: $4.00
Expert Perspectives
Crypto analyst David (@david_dogecoin) leads the bullish camp, citing the measured move technique to project a $4 target. However, several technical analysts have raised valid concerns about the pattern’s validity.
Critical Analysis: Pattern Deviations
Several key factors challenge the traditional cup and handle interpretation:
- Extended formation period (unusual for this pattern)
- Asymmetrical recovery structure
- Handle retracement exceeding typical parameters (65% vs. recommended 50% maximum)
Market Implications
While the $4 target appears ambitious, DOGE’s current consolidation at $0.17 suggests a critical juncture. Traders should watch for:
- Volume confirmation on any breakout attempt
- RSI divergence signals
- Whale wallet movements
Source: NewsBTC