Dogecoin could rally to a new all-time high upon breaking out of a developing classical cup and handle pattern on the weekly chart.
The broader market correction did not spare Dogecoin (DOGE), which has declined by over 10% in the past seven days. Most of its losses came on Monday, when it retraced by 7.8%, contributing to the crypto bloodbath that liquidated $1.7 billion worth of trading positions in 24 hours.
Bullish Pattern Bolsters Dogecoin Rebound Optimism
Dogecoin now trades around the $0.240 support, an area analysts believe would trigger a strong rebound if it holds. Meanwhile, a recent Dogecoin prediction commentary has identified another catalyst for a push to levels never seen in the token’s history.
Specifically, CobraVanguard shared a comprehensive analysis of the DOGE/USDT weekly chart on Tuesday, which buttressed the meme coin’s current situation. It highlighted a developing classical cup and handle pattern, which could potentially set Dogecoin up for a parabolic expansion.
Notably, the cup side of the structure has fully formed. It emerged from the peak price of $0.760 in May 2021 and formed a U-shaped pattern ending at the December 2024 peak price of $0.4846.
Meanwhile, the handle-shaped formation began immediately after the December 2024 high, with the meme coin also dipping in alignment. After touching the base of the handle with its drop to $0.13 in April, the price of Dogecoin has started to go parabolic to complete the structure.
Pattern Confirmation and Dogecoin Breakout Target
The accompanying chart shows that Dogecoin would have to breach the resistance level around $0.4846 to confirm the cup and handle structure. This would mean a 102% rally from its current market price of $0.240 to the price last seen in December 2024.
If Dogecoin pulls this off and forces the breakout, the analyst notes that it would rally past $0.50. Specifically, his chart shows the target for the cup and handle pattern breakout is a 267% surge to a new all-time high of $0.880.
Remarkably, CobraVanguard has been consistent in his prediction that Dogecoin will rally to $0.88 for a while now. He spotted this developing cup and handle structure in April and has remained optimistic about its completion.
Moreover, his prediction aligns with growing optimism that Dogecoin will rebound from recent dips to new highs. Trader Tardigrade recently predicted a 3x rally, while JezzaBTC claims that DOGE holders are about to get rich, as a recurring pattern targets an ambitious $18 price mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
