The price of Dogecoin is trapped in a Cup and Handle pattern that could potentially cause the price to drop below $0.2.

Dogecoin price is consolidating around $0.3 after dropping more than 21% over the past month. A cryptocurrency analyst has identified a new Cup and Handle pattern, indicating the leading meme coin may suffer more pain, with the potential to drop below $0.2. Sample chart triggering the Dogecoin price collapse A TradingView analyst named ‘Cryptechcapital’ has shared a chart showing Elliott wave analysis of Dogecoin price fluctuations on a long-term weekly time frame. While the analyst has provided a detailed report on the current Elliott wave structure of Dogecoin, he has identified the formation of a Cup and Handle pattern according to the textbook. The Cup and Handle pattern is a technical indicator signaling a consolidation phase before a breakout. Although often seen as a bullish signal prolonging an uptrend, cryptocurrency analysts have noted its appearance on the Dogecoin chart indicating a significant price correction to new lows.

The Dogecoin price chart of the analyst outlines the structure of the impulsive 5-wave from 1 to 5. Dogecoin is currently in Wave 4, a corrective wave, where the price retreats and moves sideways for a long period of time. The handle of the Cup and Handle pattern also corresponds to Wave 4 of the 5-wave structure of Dogecoin. In the near future, TradingVolume analysts have predicted that the price of Dogecoin will sharply decrease after completing Wave 4. He believes that if the Cup and Handle pattern remains intact, Dogecoin may face downward pressure in the coming week. The analyst also added that the cryptocurrency market in general may have to face similar price downturns, especially with increasing market volatility and decreasing Bitcoin prices. Although the accuracy of the analyst’s decline forecast is not specified, the corrections of Wave 4 are known to retrace significant portions of the previous Wave 3 increase. This means that if Dogecoin experiences a price decline in Wave 4, the possibility of dropping below $0.2 may occur. Dogecoin crashes, recovers later? While Cryptechcapital predicted a significant drop for Dogecoin, he also asserted that this expected correction could pave the way for a strong recovery. TradingView analyst revealed that after completing Wave 4, Dogecoin is expected to enter Wave 5, signaling the end of the bearish phase and the start of a potential price increase. As mentioned above, the Cup and Handle pattern often signals the final consolidation phase before a price breakout. TradingView analysts have predicted that Dogecoin may experience a serious price drop before triggering a recovery to the coveted $1 level. The price chart of the analyst also emphasizes that if Dogecoin reaches a local high instead of continuing to adjust as expected, the Cup and Handle pattern will be invalidated. This development will require a new forecast for the price trajectory of Dogecoin. DYOR! #Write2Win #Write&Earn $DOGE {spot}(DOGEUSDT)