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Dogecoin Cup and Handle Holds A Secret Few Are Seeing
Dogecoin is exhibiting a long-term cup-and-handle pattern, according to crypto analyst Cantonese Cat, despite recent market volatility. The analyst believes the monthly DOGE chart shows the handle formation is still intact, a potential bullish signal. The handle's recent low touched the 0.382 Fibonacci level before rebounding, currently holding the 0.618 support. This suggests the broader cup-and-handle setup targeting $2 remains valid. The cup structure formed during the 2021-2023 decline and subsequent upswing, peaking in late 2023. Friday's crash tested the lows but has since recovered, maintaining handle symmetry. The analyst also analyzed the altcoin market cap index, showing a similar pattern to the 2020 COVID deleveraging, suggesting a cleanse of excess leverage. The recovery above the 20-month moving average is encouraging after the dip. The analyst sees similarities to COVID-era deleveraging, necessary for the bull market's continuation. Cantonese Cat also points to US small-cap equities rebound as a sign of underlying market strength. The analyst's analysis provides Fibonacci extension targets, with the 1.618 projection aligning with the $2 target.
