Dogecoin’s Cup and Handle Formation Sparks $4 Price Target - But Is It Valid?
Crypto analysts eye a major breakout, but skeptics argue the pattern may not be textbook
Dogecoin (DOGE) might be gearing up for a massive move, as some analysts spot a classic "cup and handle" formation on the weekly chart. Crypto analyst David (@david_dogecoin) suggests that if this pattern plays out, DOGE could be on track to hit an ambitious $4 target. But not everyone is convinced.
The Case for Dogecoin’s Cup and Handle
The pattern’s formation started all the way back in May 2021 when Dogecoin hit its all-time high of $0.74 before tumbling into an extended downturn. This prolonged decline eventually found support in the $0.05–$0.06 range, where DOGE spent a long time consolidating. Over time, the price action formed a rounded bottom, hinting at a slow but steady shift from selling pressure to accumulation by long-term buyers.
By late 2024, Dogecoin had clawed its way back up, reaching a high of $0.48 in December. This upward momentum signaled growing bullish interest, but resistance at this level led to a pullback - forming what analysts believe to be the handle of the pattern. Currently, DOGE is consolidating between $0.14 and $0.17, a phase often seen before a major breakout.
If the breakout occurs, analysts use the "measured move" technique to estimate a target, adding the depth of the cup to the breakout point. Based on this method, some believe DOGE could skyrocket to $4.
The Counterargument: Why This May Not Be a True Cup and Handle
While the cup and handle pattern is a well-known bullish indicator, some experts argue that DOGE's price action doesn't fit the textbook definition.
For starters, a classic cup and handle typically forms over weeks or months, not years. Dogecoin’s deep decline from $0.74 to $0.05–$0.06 took too long and may resemble a long-term accumulation phase rather than a proper rounded bottom. Additionally, the recovery from the lows to $0.48 hasn’t been symmetrical, further questioning the pattern’s legitimacy.
The handle formation also raises concerns. In a textbook setup, the handle should form close to the previous high ($0.48 in this case). However, DOGE has retraced all the way down to $0.14–$0.17 - a drop of more than 65% from the rim of the supposed cup. Ideally, a handle should not fall below 50% of the cup’s depth, making this setup questionable.
What’s Next for Dogecoin?
Whether or not this pattern holds true, one thing is clear - DOGE is gaining attention once again. If it can break key resistance levels and sustain momentum, it could see significant price action in the months ahead. But traders should remain cautious, as not all bullish patterns play out as expected.
With hype building around potential price targets, will Dogecoin defy the skeptics and push toward $4? Or is this another case of misplaced optimism? Only time will tell.
