As the world of cryptocurrency continues to captivate global attention, new data suggests that a popular coin, Dogecoin, could be in for some interesting market movement. The news challenges prevailing industry sentiment, suggesting Dogecoin is still shaping a significant part of a technical pattern known as the ‘cup and handle’. Many analysts believed the handle was already in formation, but this pivot suggests the cup phase is still in progress.
#Dogecoin’s Prolonged Cup Formation
An expert analyst on TradingView shared a new interpretation of Dogecoin’s current state. This approach suggests that the cup phase of the cup and handle pattern, which has been developing for nearly four years, has been misinterpreted. Unlike the mainstream belief that this cryptocurrency has already completed the cup structure and is now forming the handle, this analyst argues that Dogecoin is still in the final stages of the cup phase.
This alternative perspective views the recent price developments not as a retest post a breakout, but instead as part of a prolonged consolidation phase that started after Dogecoin hit its peak in 2021. The data indicates that buyers are slowly building their positions during this extensive bottoming process. This theory aligns with the price holding above key exponential moving averages.
The Resistance Zone and the Cup Formation
Interestingly, this perspective interprets the resistance zone around $0.48 differently. Instead of recognizing it as a completed phase, it’s seen as just another facet of the cup formation. From this viewpoint, there’s been no breakout yet, and a move towards $0.4 would simply be part of a continued upward grind into the neckline.
This insight shifts the focus away from the handle formation or retesting of the breakout point. Instead, the focus is on the development of a fully formed cup structure that could eventually give way to a classic handle and breakout rally.
Accumulation and Upward Movement of Dogecoin
While many analysts have dismissed Dogecoin’s recent dip as a handle retest following a breakout, this technical setup suggests that the price is still on an upward trajectory towards a breakout point that has yet to be reached. If this pattern stands, a move towards $0.4 could carry the final uptrend in the cup structure, which may then give way to a handle formation.
This new projection could lead to short-term gains for Dogecoin before consolidation occurs at higher levels between $0.4 and $0.5. The real breakout above the neckline resistance is expected to occur above these levels, followed by handle formation.
It should be noted that the most critical price level to confirm the bullish continuation is $0.48. Currently, as of the time of writing, Dogecoin is being traded at $0.1967.
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What is the significance of the ‘cup and handle’ pattern in Dogecoin’s trading chart?
The ‘cup and handle’ pattern on Dogecoin’s trading chart suggests a potential price breakout. The ‘cup’ formation, which has so far been developing for approximately four years, is a period characterized by a steady accumulation of positions by buyers. Following this, the ‘handle’ phase of the pattern would lead to a significant price breakout.
What does the new analysis suggest about Dogecoin’s position?
The recent analysis indicates that Dogecoin is still in the latter stages of the ‘cup’ phase, contrary to mainstream beliefs. This suggests that the price is on an upward trend, moving towards a breakout point yet to be reached.
What does it mean for investors?
This new analysis, if accurate, implies that investors could see short-term gains for Dogecoin before consolidation occurs at higher levels. However, as always, investors must conduct their own due diligence and keep up to date with the most recent market trends, using trusted financial platforms like Finances Zippy.
