Insightful Analysis: Dogecoin’s Cup and Handle Pattern
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Decoding Dogecoin’s Market Movement
A fresh analysis from TradingView challenges the prevalent market sentiment by proposing a unique perspective on Dogecoin’s price movement. Contrary to widespread belief, this analysis suggests that Dogecoin is still in the cup phase of the classic ‘cup and handle’ pattern, rather than having completed the handle phase. This viewpoint redefines recent price trends as part of an extended consolidation phase that has persisted since Dogecoin’s peak in 2021. Despite differing opinions, there is a consensus that this setup may lead to a price recovery approaching $0.4.
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The Ongoing Cup Formation Since 2021
According to the analyst, Dogecoin has been shaping a cup and handle pattern for nearly four years. The price appears to be rounding off a wide base that dates back to its previous all-time high. This interpretation stands in contrast to the majority view, which suggests that Dogecoin had already completed the cup structure, broke out of the neckline resistance late last year, and is now poised in the handle phase before a subsequent upward move.
However, the current analysis posits that Dogecoin remains in the concluding stages of the cup phase, with no handle formation confirmed yet. The ongoing accumulation phase is evident, as the price holds above key exponential moving averages, indicating that buyers are strategically building positions amid this prolonged bottoming process.
The resistance zone around $0.48 is perceived differently in this analysis, being merely a component of the cup formation. From this perspective, a breakout has not yet occurred, and a shift towards $0.4 would signify part of a sustained upward trajectory into the neckline. The focus remains on the complete development of the cup structure, potentially setting the stage for a traditional handle and breakout rally.
Accumulation in the Cup Phase: A Path to New Heights for Dogecoin
Numerous analysts have dismissed Dogecoin’s recent pullback as a handle retest following a breakout, yet this technical setup suggests that the price is still ascending towards an unreached breakout point. According to this outlook, a movement towards $0.4 could represent the final leg of the cup structure’s uptrend, after which a handle may finally emerge.
If the pattern unfolds as anticipated, Dogecoin might experience short-term gains before entering a consolidation phase at higher levels between $0.4 and $0.5. The authentic breakout above the neckline resistance lies beyond these levels, preceding a subsequent handle formation.
The critical price level to monitor for a true confirmation of the bullish continuation is $0.48. At present, Dogecoin is trading at $0.1967. The past 24 hours have seen a brief surge above $0.2, marking the most significant short-term price resistance to overcome.
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