Dogecoin Potentially Forms Cup and Handle Pattern Targeting $4
Dogecoin (DOGE) Weekly Chart Analysis
- Dogecoin is potentially forming a cup and handle pattern.
- If confirmed, target price could be $4.
- The 'cup' formation started from May 2021's high of $0.74, followed by consolidation in the $0.05–$0.06 range.
- Recent recovery reached $0.48 before facing rejection and forming the 'handle' around $0.14–$0.17.
- A successful breakout could lead to significant price movement based on the measured move technique.
Critique of the Pattern
- Analysis questions the validity of the classic cup and handle structure.
- The decline from $0.74 to $0.05–$0.06 is considered too deep for a proper cup.
- The recovery lacks symmetry with the initial drop, resembling an accumulation phase.
- The handle's depth is excessive, dropping more than 65% from the expected rim, contrary to classic patterns.
Current trading price is $0.17.
