Dogecoin (DOGE) Weekend Volatility: 20% Loss Precedes Possible Rebound

Key Takeaways

• The descending wedge pattern suggests a possible breakout.
• The wave count indicates that the final corrective phase is nearing completion.
• Key Fibonacci retracement levels provide critical support.
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Dogecoin (DOGE) has been in a prolonged downtrend, forming a descending wedge pattern on the higher time frame. The Elliott Wave count suggests that the correction may be nearing completion as the price reaches key Fibonacci retracement levels.

A potential breakout from this pattern could signal the beginning of a new bullish cycle.

DOGE shows signs of completing its final corrective wave on the lower time frame, which could lead to a reversal if buyers step in at key support levels.

DOGE Price Analysis

The 4-hour chart for DOGE reveals a clear Elliott Wave structure. In December, the price completed a five-wave impulse to $0.48, followed by an ABCDE correction.

The price has reached the 0.786 Fibonacci retracement level at $0.171, historically significant for reversals.

The descending wedge formation also indicates a potential breakout if bullish momentum increases.

Wave E appears to be in its final stages, coinciding with DOGE testing the lower boundary of the wedge. The Relative Strength Index (RSI) is hovering near oversold territory, further supporting the possibility of a rebound.

However, a failure to hold above $0.171 could result in a deeper correction toward the $0.15 region.

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If DOGE breaks out of the wedge, the first resistance to watch will be the 0.618 Fibonacci retracement at $0.240.

A confirmed breakout above this level would indicate a potential trend reversal and could push the price toward the 0.5 retracement at $0.288, marking a key psychological level.

DOGE Price Prediction

On the 1-hour chart, DOGE appears to be in the final stages of completing wave (v) of wave C within the corrective structure.

A final downward move could push the price slightly lower to retest the wedge support before a potential bullish reversal.

However, failure to hold the $0.171 support could trigger a deeper decline toward $0.150, invalidating the immediate bullish scenario.

The RSI on the 1-hour chart is showing early signs of bullish divergence, suggesting that selling pressure is weakening. This could provide the necessary momentum for a reversal in the coming sessions.

If DOGE confirms a breakout, the bullish wave (v) target could extend beyond $0.240, potentially reaching $0.260 in an impulsive wave structure.

DOGE is nearing a critical juncture, with the descending wedge pattern and key Fibonacci retracement levels indicating a potential reversal.

While the 4-hour chart suggests that the final wave of the correction is nearing completion, the 1-hour chart signals that a short-term move lower could still occur before a bullish breakout.

If DOGE holds above $0.171 and breaks out of the wedge, the price could target $0.240 in the near term.

However, a breakdown below $0.150 would invalidate this bullish scenario and lead to further declines.

Key Levels to Watch

• Immediate Resistance: $0.190 (short-term resistance zone).
• Key Resistance: $0.240 (0.618 Fibonacci retracement).
• Critical Resistance: $0.288 (0.5 Fibonacci retracement).
• Immediate Support: $0.171 (0.786 Fibonacci retracement).
• Critical Support: $0.150 (descending wedge bottom).
• Short-Term Target for Wave (v): Above $0.240 if momentum sustains.
• Invalidation Zone: Below $0.150, signaling further downside potential.