Dogecoin's Cup and Handle Pattern Targets $4
1min read Dogecoin (DOGE) is currently exhibiting a potential cup and handle pattern on its weekly chart, according to crypto analyst David. If this pattern is confirmed, Dogecoin could be targeting a price of $4. The cup formation began when Dogecoin declined from its May 2021 all-time high of $0.74, leading to an extended consolidation period where the asset formed a rounded bottom in the $0.05–$0.06 range. This downward movement suggests a gradual shift in market sentiment, with buyers accumulating DOGE at lower levels.
Over time, Dogecoin started to recover from this bottom, pushing back towards its December 2024 high at $0.48. This steady rise indicates building bullish momentum and increasing market interest. However, after reaching the $0.48 resistance level, Dogecoin faced a rejection, leading to a moderate pullback. This decline formed the handle, a smaller downward retracement that typically precedes the final breakout. The handle is currently forming around the $0.14–$0.17 price zone, where the market is consolidating.
The handle phase is crucial as it allows weaker hands to exit while stronger buying interest gathers momentum before a decisive move higher. If Dogecoin successfully breaks out of the cup and handle pattern, the projected price target can be estimated using the measured move technique. 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 the chart shared by analyst Kevin.
However, it is important to note that this pattern deviates from the classic cup and handle structure. A textbook cup and handle requires a rounded bottom and a shallow handle forming near a prior all-time high or key resistance zone before a breakout. The decline from $0.74 to $0.05–$0.06 is too deep and prolonged to be considered a proper cup formation, as classic cup patterns typically form over weeks to months, not multiple years of extended downtrend. The recovery from $0.05–$0.06 to $0.48 is not symmetrical with the initial drop, making the “rounded bottom” aspect of the cup questionable. Instead, the price action resembles a multi-year accumulation phase rather than a continuous rounding structure.
Moreover, the handle is forming too deep in the structure. A valid handle should develop near the rim (i.e., close to $0.48), but in this case, Dogecoin has retraced all the way down to $0.14–$0.17—which is a massive drop of over 65% from the supposed cup rim. A healthy handle should not drop below 50% of the cup’s depth, but here, it retraces nearly to the lower third of the structure, invalidating the classical pattern. At press time, DOGE traded at $0.17.
