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This article is also available in Spanish.
Dogecoin (Doge) forms cups and handle formations on weekly charts. Crypto analyst David (@david_dogecoin) suggests that if confirmed, Dogecoin can target an ambitious $4 price target.
Dog coin cup and handle pattern
The first stage in this pattern, the cup, began to shape when Dogecoin first declined from May 2021 at $0.74. This downward movement extended the integration period and gradually formed a round bottom in the range of $0.05-$0.06. The curvature of price action suggests a slow and steady change in market emotions. There, sales pressure was gradually absorbed by buyers accumulating Doge at lower levels.
Over time, Dogecoin began to recover from this bottom, returning to its December 2024 high to $0.48. This high signal that bullish momentum is being built has gradually risen steadily, and interest from market participants is growing.
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After reaching a $0.48 resistance level, Dogecoin faced rejection, leading to a medium pullback. This reduction created the handle. This is a small downward retracement that usually precedes the final breakout. The handle of this setup is formed around the $0.14-0.17 price range where the market is currently integrated.
The handle serves as the final phase of weaker hands, and will attract momentum before stronger purchase interests become more critical. Once the Dogecoin is successfully split from the cup and handles the handle pattern, the measured movement technique can be used to estimate the predicted price target. This involves calculating the depth of the cup and adding that value to the breakout point. Based on this method, the expected target is around $4, according to a chart shared by analyst Kevin.
Criticism: Why isn’t this a classic cup?
Textbook cups and handles require certain structural properties, such as rounded bottoms and shallow handles, which form near previous altitudes or key resistance zones before breakout. However, there is an important deviation in this analysis that raises doubts its validity.
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A decrease from $0.74 (May 2021) to $0.05-0.06 is something that is too deep to be considered a proper cup formation. Classic cup patterns usually form over weeks to months and are not an extended downtrend for years.
A recovery between $0.05-$0.06-$0.06-$0.48 is not symmetrical to the initial drop, but rather the “round bottom” side of the cup. Instead, price action is similar to multi-year accumulation stages rather than continuous rounding structures.
Additionally, the handle is formed deeply within the structure. A valid handle should occur near the rim (i.e. close to $0.48), but in this case Dogecoin retreated all the way from $0.14 to $0.17. A healthy handle should not fall below 50% of the cup depth, but here we approach a lower third of the structure and disable the classical pattern.
At the time of pressing, Doge traded for $0.17.
Featured images created with dall.e, charts on tradingview.com
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