In a market shaken by liquidations and concern, one chart sample on Dogecoin’s increased timeframe continues to whisper a narrative most merchants appear to be lacking. Based on crypto analyst Cantonese Cat, the month-to-month DOGE construction nonetheless kinds the deal with of a bigger cup-and-handle formation that has been creating since 2021.
Dogecoin Cup and Deal with Nonetheless Targets $2
Regardless of Friday’s sharp crash throughout altcoins, the analyst argues there’s “no technical injury.” His chart exhibits that the deal with wick retraced so far as the 0.382 logarithmic Fibonacci stage earlier than rebounding to carry the 0.618 retracement as help, preserving the symmetry of the broader bullish setup that factors towards the long-discussed $2 extension zone.
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“It is a deal with to the cup that depraved as far down because the 0.382 log fib however is at the moment holding 0.618 again as help. There isn’t any technical injury within the higher scheme of issues. Solely emotional injury,” Cantonese Cat wrote by way of X.
The chart maps a rounded base from the 2021–2023 decline right into a mid-2023–2024 upswing that peaked on the 1.000 Fibonacci marker at $0.48442 in December 202, thereby finishing the “cup.”
Value has since carved the “deal with,” with Friday’s crash extending under the 0.382 retracement at $0.11771 earlier than recovering above the 0.618 at $0.20205. On the time of the snapshot, DOGE traded at $0.20568 on the month-to-month candle, down 11.74% for the interval, with open, excessive, and low printed at $0.23304, $0.27043, and $0.10305, respectively.
The fast inflection stays the 0.618 pivot close to $0.20205; sustained acceptance above that shelf retains the deal with constructive. Overhead, the 0.707 and 0.786 retracements—$0.24770 and $0.29681—body the following resistance band. An in depth via these ranges would re-expose the prior swing zone across the 0.886 at $0.37315 and the 1.000 at $0.48442.
Cantonese Cat’s roadmap additionally contains commonplace Fibonacci extensions derived from the finished cup. The 1.272, 1.414, and 1.618 projections sit at $0.90288, $1.24968, and $1.99344, respectively. The latter aligns with the widely cited “$2” objective and is the technical anchor behind the analyst’s headline declare.
On the draw back, the 0.500 at $0.15422 and 0.382 at $0.11771 mark the important thing retracement helps already stress-tested by the month’s wick; a decisive month-to-month shut under 0.382 would compromise the deal with symmetry, however that situation has not been met on the present candle.
Altcoin Momentum Additionally Nonetheless Intact
To contextualize last week’s washout across altcoins, the analyst printed a second month-to-month chart of the “OTHERS” market-cap index (complete crypto market cap excluding the highest 10). The panel overlays 20-period Bollinger Bands and exhibits a basic squeeze previous an abrupt spike in realized volatility.
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Based on the readout, the index opened the month close to $300.19 billion, posting a excessive at $332.18 billion and a capitulation low at $156.59 billion earlier than rebounding to $270.35 billion. Notably, that restoration carried again above the 20-month shifting common—the Bollinger center band—at the moment at $264.88 billion, after wicking to the decrease band at $167.44 billion.
The higher band resides at $362.31 billion. Arrows on the chart spotlight a near-identical sample in the course of the March 2020 COVID deleveraging: a month-to-month lower-band wick inside a band squeeze that preceded a sustained upside cycle as soon as the candle reclaimed the mid-band.
In commentary accompanying the charts, Cantonese Cat likened the weekend’s crypto drawdown to a“COVID-like deleveraging.” He wrote: “What occurred this previous weekend with altcoins is similar to the deleveraging that happened in COVID based mostly on technicals, with month-to-month Bollinger band squeeze and wicking all the way down to decrease Bollinger band. These strikes are crucial for us to maneuver up if the bull market will not be over but.”
He additionally pointed to US small-cap equities—by way of the Russell 2000 ETF (IWM)—as proof of broader danger urge for food, arguing that small caps’ V-shaped rebound from their very own decrease Bollinger Band and method towards all-time highs helps clarify why Bitcoin miners are outperforming spot cryptocurrencies. In his view, market-wide liquidity exists, however clearing extra leverage in altcoins was a precondition for the following leg increased.
At press time, DOGE traded at $0.21124.
Featured picture created with DALL.E, chart from TradingView.com
