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Dogecoin, the popular meme-inspired cryptocurrency, is currently capturing the attention of technical analysts as its weekly chart exhibits a textbook 'cup and handle' continuation structure. This classic pattern, widely recognized in technical analysis circles, is being observed by crypto analyst badger (@badger0102), who has mapped out a potential macro cup-and-handle formation that effectively spans the entire 2021–2025 market cycle. This intriguing development suggests an upside potential that could significantly surpass its prior all-time highs.
The analyst's findings, shared alongside a TradingView screenshot of the DOGE/USD pair on Binance, indicate that at the time of charting, Dogecoin's price hovered around $0.2268. This position is strategically located between the crucial 0.50 and 0.618 Fibonacci retracement levels of the measured move, underscoring the current equilibrium in the market as the pattern progresses.
Understanding Dogecoin's Cup And Handle Pattern
The 'cup' portion of this multi-year pattern paints a compelling narrative of Dogecoin's journey. It initiates with the euphoric blow-off top witnessed in 2021, marking the peak of its previous bull run. Following this, the price entered a prolonged period of decline, eventually bottoming out during the 2022–2023 bear market trough. A subsequent rounded recovery then took shape, gradually gathering momentum and accelerating notably throughout 2024. This extensive basing arc reflects a significant shift in market sentiment and accumulation dynamics.
The left rim of this massive cup is defined by Dogecoin's 2021 distribution area, characterized by a dashed, falling trendline that historically guided prices lower. Crucially, this downtrend line was conclusively breached during Dogecoin's advance in 2024, signaling a potential shift in market control from bears to bulls. The lowest point of the base aligns precisely with the 0.00 Fibonacci anchor, situated near the $0.0491 mark, establishing a clear foundation for the pattern. The right rim of the cup materialized during the first and second quarters of 2025, as Dogecoin experienced a significant thrust that eventually stalled just beneath the 0.786 Fibonacci retracement at approximately $0.4181. This surge also came before reaching the 0.886 retracement at around $0.5490, collectively forming the structural 'lip' of the cup.
The 'Handle' Formation and Critical Levels
Subsequent to this powerful surge that completed the cup, DOGE proceeded to carve out a classic 'handle' pullback through mid-2025. This phase saw Dogecoin's price bottoming out in the discernible $0.14 region, which conveniently brackets the 0.382 Fibonacci retracement at approximately $0.1391. This orderly retracement is a hallmark of a healthy cup-and-handle pattern, suggesting that profit-taking and consolidation are occurring in a controlled manner.
Following the handle's low, Dogecoin pivoted higher, initiating a rebound that has since reclaimed the 0.50 Fibonacci level at around $0.1919. Currently, the price is pressing towards the 0.618 retracement at approximately $0.2646. This level is identified as the first key resistance that bulls must decisively clear to maintain the handle's constructive geometry and uphold the validity of the overall pattern. The depth of the handle, as depicted in the chart, remains proportionate—approximately a 38–50% retrace of the right-rim advance—further preserving the pattern's robustness on a weekly timeframe.
Should the bullish momentum persist, the chart delineates a clear ladder of resistances and ambitious price targets. Above the critical $0.2646 (0.618) level, the structure's neckline or 'rim zone' comes into focus, spanning from the mid-$0.30s to the low-$0.40s. This zone is ultimately capped by the 0.786 Fibonacci retracement at approximately $0.4181. A weekly close definitively above this band would signal a textbook cup-and-handle breakout, a highly anticipated event that would activate several measured-move and extension objectives higher up the Fibonacci stack.
These ambitious targets include the 0.886 retracement at roughly $0.5490, followed by the 1.000 extension near $0.7488, and the 1.128 extension at around $1.0611. However, the most compelling marker on the chart is a prominently highlighted circle indicating the 1.414 Fibonacci extension. This level, approximated at **$2.3119**, is framed as the ultimate macro target for Dogecoin should the pattern successfully complete and the upward trend extend as anticipated. This target represents a significant increase from its current valuation and implies a potential re-evaluation of Dogecoin's market position.
Invalidation and Risk Management
While the upside potential is significant, the handle's structure also provides a clear invalidation map for traders and investors. Immediate support levels are identified at the 0.50 Fibonacci retracement ($~0.1919), followed by $~0.1391 (0.382 retracement), and then $~0.0934 (0.236 retracement). A sustained breach below the handle's low, particularly in the mid-$0.15s, would severely undermine the pattern's validity. Such a breakdown would carry the risk of a significant return toward the deep-base band situated above $0.05, anchored at the 0.00 Fibonacci level of $0.0491.
In a broader context, the multi-year rounding base observed in Dogecoin's chart significantly underscores a fundamental shift in market dynamics—from a period of distribution to one of strong accumulation. This shift is further evidenced by the conclusive break of the long-term dashed downtrend line, which originated from the 2021 high and persisted through 2022–2023. The subsequent right-side advance and the orderly handle retracement perfectly align with the classic momentum-pause-continuation sequence that experienced technicians actively seek on higher-timeframe charts.
It is crucial to note, however, that the confirmation of this bullish pattern remains conditional on follow-through from the market. For the pattern to fully materialize and reach its ambitious targets, bulls must successfully absorb the existing supply in the $0.26–$0.27 range, effectively challenge and overcome the formidable $0.35–$0.42 rim resistance, and ultimately register a decisive weekly breakout characterized by expanding trading volume and range. These conditions are vital for activating the higher Fibonacci targets.
At the time of writing, Dogecoin was trading at $0.225. The coming weeks and months will be critical in determining whether this textbook cup-and-handle pattern will play out as predicted, potentially leading to a substantial appreciation in Dogecoin's value.
