Dogecoin’s cup and handle pattern is back on the chart, which could indicate another recovery trend. This chart pattern was highlighted by crypto analyst Merica Trader in a post on TradingView and indicates that Dogecoin could soon reverse. This analysis further explains how this formation occurred and what this means for the memecoin price as we enter another week of trading in the current bearish environment.
Understanding the Dogecoin Macro Cup and Handle Pattern
Interestingly, the formation of the macro cup and handle pattern did not begin as recently as it usually does. Cryptocurrency analysts explain that this formation began many years ago, back in 2021, when Dogecoin prices sparked a legendary 36,000% rise to new all-time highs.
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This came after perhaps the most powerful pole-and-flag rally in Dogecoin price history, pushing the price to new heights in the process. However, this creates a multi-year cup and handle pattern, with the cup portion of the pattern forming from 2021. This large cup formation indicates long-term accumulation in Dogecoin price.
According to analysts, the cup was completed with the handle pattern still in progress. As part of this, Dogecoin price is currently trading within a descending handle, and this is where the bullish part comes into play. This is because a descending bullish handle often appears as a precursor to a bullish price breakout.
Why DOGE price could reach $4
The handle pattern has already begun to form, and the bullish trend is just around the corner. If Dogecoin’s price is able to break out of its downward handle, it will set the tone for an upward reversal for the memecoin.
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The main thing about this bullish handle is the fact that the breakout can last multiple years. This multi-year expansion phase could see continued price increases as Dogecoin heads back towards its all-time high of $0.74, set in 2021.
However, this does not mean the end of the uptrend, with crypto analysts explaining that the completion of the cup and handle pattern will cause the price to rise significantly. The target is a more conservative floor of $2.8. However, a 2,400% expansion is still possible and the price will rise to $4 before the trend is completed.
Featured image from Dall.E, chart from TradingView.com
