Dogecoin (DOGE) Price Falls 13% After Hitting September Target, Bullish Signs Emerge

Key Takeaways

• DOGE breaks descending resistance, signaling bullish potential.
• Wave structure suggests an upward move to $0.144.
• Support above $0.10 is crucial for the bullish trend.

DOGE has undergone significant price action this year, reaching its yearly high before entering a correction. Recently, the token has shown bullish momentum by breaking key resistance levels, suggesting a potential rally.

This analysis explores DOGE’s recent trends, wave patterns, and potential price targets.

DOGE Price Analysis 

On March 28, DOGE reached its yearly high of $0.22, completing a five-wave pattern that began in October 2023. Following this, it entered a prolonged correction within a descending triangle.

During this correction, DOGE retraced to the 0.768 Fibonacci level, around $0.090, coinciding with a key horizontal support zone. After rebounding from this level, the price encountered the descending resistance on Sept.14 and was rejected.

Despite this minor setback, DOGE’s overall outlook remained bullish as it formed a higher low on the subsequent retracement.

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Since Sept. 16, a new upward move has been observed, breaking above the descending resistance and potentially signaling the start of a new bullish phase.

Further confirmation is needed, but DOGE could be on the verge of a major rally.

DOGE Price Prediction

A closer look at the hourly chart shows a five-wave impulse from Sept. 6 to 13, followed by a three-wave decline. These movements are the first two sub-waves of a larger five-wave movement from a higher degree count.

As DOGE advances upward, wave 3 seems to have finished, as it reached the optimal 1.618 Fibonacci extension level at $0.13. 

The breakout and retest of the previous resistance as support reinforces this bullish momentum.

We saw a downturn from the Sept. 28 high, leading DOGE down by 13.65% but still above its assumed wave 1 ending point. 

Read more: Dogecoin Price Prediction 2024: DOGE Price Analysis

This makes it highly likely that it is in wave four, but if it continues below $0.10, we will invalidate that possibility. Therefore, we expect an upturn, and the price has already made a 5% bounce.

According to this projection, DOGE is set to continue its upward trajectory and reach a new higher-high of $0.144 at the 2.272 Fib extension level. 

About the Author

Nikola Lazic

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. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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