DOGE price made a revisit of its yearly high but got rejected. More sideways trading expected as complex correction further develops.
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Key Takeaways
DOGE peaked at $0.48, forming a rising wedge pattern.
Wave 4 correction targets $0.33, $0.29, and $0.24 support.
RSI downtrend and bearish divergence confirm momentum loss.
The Dogecoin (DOGE) chart shows a strong Wave 3 rally, peaking at $0.48 on Nov. 23.
Since then, the momentum slowed with a 21% decline, forming a rising wedge and signaling the start of a corrective Wave 4 pullback toward key Fibonacci support levels.
The daily DOGE chart reveals a strong 5-wave impulse move, with the price peaking at $0.48 during Wave 3, aligning with the 2.272 Fibonacci extension.
Momentum has slowed, forming a rising wedge that signals the onset of a corrective Wave 4 pullback.
DOGEUSD rising wedge formed with bearish divergence | Credit: Nikola Lazic/TradingView
Key support for Wave 4 lies around $0.35 (1.618 Fib) and $0.29 (1.272 Fib retracement). If the correction deepens, the 0.786 retracement level at $0.21 may be strong support.
The daily Relative Strength Index (RSI) is trending downward, confirming diminishing bullish momentum and suggesting a period of consolidation.
Before its recent 21% decline, it made a bearish divergence, which pointed at a reversal in conjunction with the rising wedge.
Key Observations
DOGE peaked at $0.48, aligning with the 2.272 Fibonacci extension.
Price is forming a rising wedge, signaling a Wave 4 correction onset.
RSI downtrend indicates reduced momentum, supporting the current consolidation.
DOGE Price Prediction
The hourly DOGE chart indicates that Wave 3 peaked at $0.48, followed by a corrective structure (WXY) in Wave 4.
Price has fallen below the 0.236 Fibonacci retracement level at $0.38, signaling further downside potential toward deeper Fibonacci supports before a bullish reversal.
This came after revisiting its yearly high, proving resistance remains at those levels.
DOGEUDS WXY correction likely developing | Credit: Nikola Lazic/TradingView
The next key support levels include $0.33 (0.382 Fib), $0.29 (0.5 Fib), and $0.24 (0.618 Fib). These levels are critical for Wave 4 to find a bottom before resuming upward momentum in Wave 5.
There is a possibility that Wave 4 ended as an ABC correction at its last low of $0.36 on Dec. 10, but a more likely outcome is further development of the complex WXY correction.
For bullish confirmation, DOGE needs to reclaim $0.38 and break above the $0.45 resistance. If Wave 5 initiates, Fibonacci extensions point to targets at $0.51 (2.618 Fib) and $0.55.
A breakdown below $0.29 would invalidate this setup and signal further correction.
Key Levels to Watch
Resistance: $0.38 (0.236 Fib) and $0.48 (Wave 3 high).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
