Dogecoin Price Consolidates Around $0.3 Amid Potential Crash Below $0.2
The Dogecoin price is consolidating around $0.3 after a decline exceeding 21% in the past month. An analyst has identified a Cup and Handle pattern, indicating a potential drop below $0.2.
Chart Pattern to Trigger Dogecoin Price Crash
A TradingView analyst known as ‘Cryptechcapital’ shared an Elliott Wave analysis of Dogecoin’s long-term price movements. The analysis highlights a textbook Cup and Handle pattern, typically a bullish signal but, in this case, suggests a significant price correction may occur.
The analyst's chart outlines a 5-wave impulse structure, with Dogecoin currently in Wave 4, indicating a period of consolidation. The handle of the Cup and Handle pattern aligns with this correction wave.
In the short term, there is a prediction of a significant price crash once Wave 4 completes. If the Cup and Handle pattern holds, downward pressure on Dogecoin may persist over the next week, reflecting broader market volatility and Bitcoin's declining price.
Wave 4 corrections often retrace substantial portions of previous gains, suggesting a dip below $0.2 could be possible if Dogecoin declines during this phase.
Dogecoin Crash First, Recovery Next?
Despite the predicted crash, Cryptechcapital believes this could lead to a powerful rebound. After completing Wave 4, Dogecoin is expected to enter Wave 5, potentially signaling the end of its bearish phase and the start of a price rally.
The Cup and Handle pattern indicates a final consolidation before a breakout. A severe price crash could precede a recovery toward the $1 mark.
If Dogecoin reaches a local high instead of continuing its projected correction, the Cup and Handle pattern will become invalid, necessitating a revised forecast for its price trajectory.
