Dogecoin's Cup-and-Handle Pattern: Bullish Setup for $5 Rally

Despite the recent crypto market downturn, a prominent crypto analyst has suggested that Dogecoin, the original meme coin, could be poised for a significant price rally. According to the analyst, the latest pullback has resulted in a near-perfect cup-and-handle pattern on Dogecoin's price chart, indicating a potential bullish setup that could propel the cryptocurrency to $5 in the near future.

The analyst, CryptoELITES, shared a DOGE price chart on the X social media platform, illustrating the formation of a cup-and-handle pattern. This bullish technical formation occurs when the price initially drops, followed by a U-shaped recovery resembling a "cup," and then a period of consolidation, which looks like a "handle." In technical analysis, the pattern typically resolves when the price breaks above the handle and rises by as much as the maximum distance between the cup's trough and the neckline. A successful breakout from a cup-and-handle pattern can spark a meteoric rise, as it confirms a trend bottom and a higher sideways consolidation during its formation.

Based on this analysis, the doggy-themed crypto's cup-and-handle breakout target is around $5, representing a more than 2,300% increase from current price levels. However, another analyst, Trader Tardigrade, has suggested that Dogecoin is approaching a potential breakout that could result in a double-digit price, indicating that the $5 prediction might be conservative.

In his Feb. 25 post on X, Trader Tardigrade pointed out that Dogecoin has historically experienced a massive price correction just before a "super HUGE bull run." He observed that the canine-themed meme coin followed a similar pattern in 2017 and 2021, falling 60% and 56%, respectively, before rising significantly. In 2017 and 2021, DOGE registered price eruptions of 8,900% and 30,500%, respectively. Tardigrade stressed that Dogecoin had concluded a 50% retreat from its January high and successfully retested the levels from where the structure broke. Therefore, the asset's next target is $10.