Dogecoin (DOGE) Price Challenges Resistance Levels — Breakout Potential in Focus

Key Takeaways

• DOGE dropped below $0.10, invalidating the bullish wave count.
• The next support target lies at $0.076, based on Fibonacci extensions.
• WXYXZ structure suggests another drop before correction concludes.

DOGE has faced significant volatility in 2023, initially showing bullish momentum but shifting toward a bearish outlook after recent corrections.

While it reached a high of $0.13 in September, subsequent downturns have cast doubt on a sustained rally.

The price now sits at a critical resistance point, and its next move will determine whether a bull phase begins or further declines are ahead.

DOGE Price Analysis

On March 28, DOGE reached its yearly high of $0.22, completing a five-wave pattern that began in October 2023. After this peak, the price entered a correction phase, forming a descending triangle. During this decline, DOGE retraced to the 0.768 Fibonacci level, around $0.090, aligning with key horizontal support.

After bouncing from this level, DOGE hit descending resistance on Sept. 14, leading to a temporary rejection.

Despite this setback, the overall outlook remained bullish as DOGE formed a higher low during the retracement.

A new upward movement began on Sept. 16, breaking above the descending resistance and reaching a high of $0.13 on 28. 

But this was short-lived, and an immediate 24% downturn followed, whipping out the gains previously made and questioning the bullish outlook. 

Initially, the correction was counted as an ABCDE structure, with the upward move from Sept. 6 marking the start of a five-wave impulse. However, this scenario was invalidated when DOGE dropped below $0.10 on Oct. 3.

Although the 14% rally that followed seemed promising, the subsequent downturn shifted the outlook to bearish.

Now, the price is again back at the horizontal resistance, but this time at a point where the descending channel also meets this resistance.

As it puts pressure on the levels, will another rejection send DOGE further to the downside, or will it make a breakout, signaling a bull phase? 

DOGE Price Prediction

On the hourly chart, DOGE initially displayed a five-wave impulse from Sept. 6 to 13, followed by a three-wave decline. These movements likely represented the first two sub-waves of a new bullish sequence.

However, wave three was completed on Sept. 28 with a high of $0.13, and the expected pullback for wave four fell deeper than anticipated, invalidating the bullish scenario.

The recent uptrend is a three-wave ABC correction rather than a sustained bullish impulse. The downtrend from September 28, followed by the October recovery, is likely part of two sub-waves signaling further downside movement.

Based on Fibonacci extensions, DOGE’s next target could be around $0.076, corresponding to the 1.272 level.

Looking at the broader trend, the correction pattern seems to follow a WXYXZ structure instead of the ABCDE count initially expected.

In this scenario, the rise from Sept. 6 was likely the second wave X, with a final drop in wave Z expected to conclude the WXYXZ correction.

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