Dogecoin (DOGE) Could Be Forming a Cup and Handle Pattern with a Target of $4
Crypto analyst David (@david_dogecoin) suggests that Dogecoin might be forming a "cup and handle" pattern on its weekly chart. If this pattern is confirmed, Dogecoin could aim for a price of $4.
What is the Cup and Handle Pattern?
The "cup" part of the pattern started when Dogecoin dropped from its highest price of $0.74 in May 2021. After that, the price stayed low between $0.05 and $0.06 for a while, forming a rounded bottom. This shows that more buyers were picking up Dogecoin at lower prices, absorbing the selling pressure.
Over time, Dogecoin began to recover and reached $0.48 in December 2024. This steady rise shows that more people are becoming interested in buying Dogecoin.
After hitting $0.48, Dogecoin faced some resistance and pulled back a bit. This pullback is called the "handle," which is a smaller dip before a possible breakout. Right now, the handle is forming between $0.14 and $0.17.
The handle is where weak hands (or sellers) usually exit, and stronger buyers prepare for a potential price increase. If Dogecoin breaks out of this pattern, its price could rise to around $4, based on the chart shared by analyst Kevin.
Why This May Not Be a Classic Cup and Handle
While the pattern looks like a cup and handle, there are some issues with it. A typical cup and handle has a rounded bottom and a shallow handle near a previous high or resistance level before the price breaks out. But here, the drop from $0.74 to $0.05–$0.06 is too deep and lasted too long to be considered a proper cup shape. Normally, the cup forms in a few weeks or months, not over several years.
Additionally, the price recovery from $0.05–$0.06 to $0.48 is not smooth or symmetrical, which makes the rounded bottom unclear. Instead, this looks more like a long-term accumulation phase rather than a clean cup shape.
The handle also dips too far. It should stay closer to the $0.48 level, but here it dropped all the way down to $0.14–$0.17, more than 65% below the cup's rim. A typical handle should not drop more than 50% of the cup's depth, so this is a big deviation from the usual pattern.
As of now, DOGE is trading at $0.17.
