DOGE price makes a symmetrical triangle and now gets close to its resistance. Will we see a breakout?
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Key Takeaways
DOGE remains in a Wave 4 corrective phase within an Elliott Wave structure.
Bearish RSI divergence hints at a weakening bullish trend.
A breakout above the trendline could confirm the start of Wave 5.
A breakdown below $0.29 may test the critical 0.618 retracement level at $0.24.
Dogecoin (DOGE) is at a crossroads, with its recent price action underscoring the importance of upcoming resistance and support levels.
Technical analysis suggests the memecoin is in the Wave 4 corrective phase of an Elliott Wave structure, with momentum poised for either a breakout or breakdown.
DOGE Price Analysis
The daily chart shows DOGE correcting after a significant bullish rally that peaked in Wave 3 near $0.48.
This was followed by an ABC corrective pattern that reached a low of $0.26 on Dec. 20.
Since then, DOGE has been consolidating within a downward channel, with the 0.382 Fibonacci retracement level ($0.32) acting as resistance..
DOGEUSD price nears descending resistance | Credit: Nikola Lazic/TradingView
The RSI, approaching oversold levels, indicates reduced bearish momentum, though it hasn’t signaled a full reversal yet.
DOGE’s price has respected the $0.29-$0.30 range as support, but failure to hold this level could lead to a deeper retracement toward $0.24 (0.618 Fibonacci).
DOGE Price Prediction
DOGE’s hourly chart presents a symmetrical triangle pattern, a typical consolidation signal before a significant price move.
Wave 4 appears to be nearing completion, with price action hovering near key Fibonacci levels.
DOGEUSD symmetrical triangle formed since recent low| Credit: Nikola Lazic/TradingView
A breakout above the descending trendline near $0.35 could pave the way for bullish momentum, pushing DOGE toward $0.39 (0.236 Fibonacci) and eventually $0.48, the previous high. This would confirm the start of Wave 5.
A failure to break above $0.35 could see DOGE retesting the 0.5 Fibonacci support at $0.29. Further downside could target the 0.618 level at $0.24, posing risks of extended bearish sentiment.
The RSI shows a slight bullish divergence on shorter timeframes, indicating waning bearish strength. However, market sentiment and trading volume will play critical roles in confirming the next move.
A breakout above $0.35 may signal a bullish continuation toward Wave 5.
A breakdown below $0.29 could target $0.24 or lower.
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.
