Dogecoin (DOGE) is coming into the focus of traders as it is forming a classic cup and handle pattern on its weekly chart.

If confirmed, this pattern could propel the memecoin to an ambitious price target of $4, according to analyst David.

The formation started in May 2021, when Dogecoin pulled back from its all-time high of $0.74. This decline led to a prolonged period of consolidation, where DOGE formed a rounded bottom between $0.05 and $0.06.

This slow and steady movement suggested increasing accumulation, with early buyers positioning for a future rally.

Strong Resistance Leads to Pullback

As market sentiment improved, DOGE gradually recovered, reaching $0.48 in December 2024. This steady plotted recovery signaled renewed investor interest and bullish momentum.

However, this level acted as strong resistance, leading to a moderate pullback.

This pullback formed the handle, a necessary phase in the cup and handle pattern. The handle is currently shaping up in the $0.14 to $0.17 zone, where DOGE is consolidating. If this pattern holds, the final breakout could be the explosive move traders are anticipating.

Crypto analyst David believes that once the breakout happens, the measured move technique—adding the cup’s depth to the breakout level—suggests a price target of $4.

Dogecoin’s Next Surge Hinges on $0.16

Meanwhile, another well-known analyst, Ali Martinez, sees another bullish case for DOGE. In a March 14 post on X, he highlighted Dogecoin’s long-term Ascending Channel pattern.

This channel has acted as a key support level for years, preventing DOGE from slipping lower.

Last year, DOGE tested the bottom of this channel and successfully bounced back. Now, following a sharp decline, the price is once again near this crucial support. If history repeats itself, a strong rebound could set the stage for another surge. Martinez emphasized, “Dogecoin $DOGE still has a chance to go parabolic if the $0.16 support level holds!”

The recent market crash rattled investors, bringing uncertainty to crypto assets. However, as long as DOGE remains inside its Ascending Channel, Martinez believes its bullish potential remains intact. The coin’s ability to hold its $0.16 support level will be key in determining its next big move.

In the past 24 hours, Dogecoin has shown signs of resilience, rising 2.45% to $0.175.