Key Takeaways
Dogecoin presents an intriguing mix of corrective and impulsive wave structures on its charts.
With a higher time frame (4 hours) showing a broad Elliott Wave progression and a lower time frame (1 hour) revealing fine-grained subwave detail, DOGE appears poised for decisive movements.
On the 4-hour chart, Dogecoin’s price structure showcases a completed wave (4) corrective sequence, which bottomed at $0.26 on Dec. 20 near the 0.618 Fibonacci retracement from the prior wave (3).
The subsequent breakout has initiated wave (5), as seen in the rising channel that began in late December.
DOGE has encountered resistance near $0.40, coinciding with the 0.236 Fibonacci retracement of the overall move from wave (2) to wave (3).
The Relative Strength Index (RSI) on the 4-hour time frame hovers in neutral territory, indicating neither overbought nor oversold conditions. This suggests the possibility of continuation in either direction.
Furthermore, the broad wave count implies that DOGE may attempt higher highs above $0.48, especially if bullish momentum resumes.
However, a failure to hold the $0.35 midline of the rising channel would imply a deeper retracement toward $0.33 or even $0.28.
The one-hour chart shows the unfolding wave (v) at a high of $0.43 on Jan 18. DOGE appears to have completed the sub-waves of the five-wave impulse, forming the final leg upward.
The corrective decrease found support along the channel’s lower boundary at $0.34 on Jan. 20, maintaining the broader bullish structure.
Should this support hold, we can see the continuation of the upward move to a higher high than the one in December, as the highest degree wave 5 has much more room to the upside.
However, a breakdown below $0.35 would invalidate the bullish wave count, exposing DOGE to a potential drop toward $0.33 or even $0.28.
Traders should closely watch for volume confirmation and RSI behavior to validate further upward movement.