The price of Dogecoin is hovering around $0.3 after a substantial decline of over 21% in the last month. Notably, a crypto analyst has identified a Cup and Handle pattern, signaling more bearish trends for Dogecoin, potentially dropping below $0.2.
A TradingView analyst, 'Cryptechcapital', shared an Elliott Wave analysis of Dogecoin's movements. Despite a Cup and Handle often being a bullish sign, its current appearance indicates a notable downside.
Wave 4, a correction phase, corresponds with the handle of this pattern, suggesting a significant price fall. The analyst foresees Dogecoin completing Wave 4 soon, potentially triggering further declines amid broader cryptocurrency volatility.
Although the analyst does not specify the exact levels, Wave 4 corrections usually retrace significant parts of previous gains. Therefore, a drop below $0.2 could occur as part of this correction.
However, post-correction, a potential rebound entering Wave 5 is anticipated, ending the bearish trend. The analyst suggests that Dogecoin may see a robust recovery following this crash.
