Dogecoin (DOGE) Price Gains 14% Over Weekend, but Bearish Trend Persists

Key Takeaways

• DOGE faces potential correction from overbought conditions.
• Price recovery from support levels shows resilient momentum.
• Long-term trend depends on momentum in the next downturn.

Dogecoin’s (DOGE) recent price movements reflect a dynamic trading environment with potential for both upside and correction.

Following a high of $0.22 in March, DOGE’s price action has alternated between optimistic rallies and corrective downturns.

With technical patterns hinting at key support and resistance levels, the outlook for DOGE remains cautious yet poised for potential shifts.

DOGE Price Analysis

On March 28, the price of DOGE reached its yearly peak of $0.22, completing a five-wave formation that started in October 2023.

Following this high, DOGE entered a corrective phase, forming a descending triangle and retracing to $0.090, finding key horizontal support. After bouncing off this level, DOGE encountered descending resistance on Sept. 14, leading to a temporary pullback.

The overall sentiment remained optimistic, as DOGE formed a higher low during the retracement. A new upward movement began on Sept. 16, breaking past descending resistance and reaching $0.13 by Sept. 28.

However, this rally was short-lived, as a swift 24% drop erased prior gains, casting doubts on the bullish outlook.

The correction appeared to follow an ABCDE structure, with the upward movement from Sept. 6 marking the start of a five-wave impulse. After finding support at horizontal resistance, DOGE made another upward push, hitting a high of $0.15—an increase of 40% from the start of the month. The daily RSI indicates DOGE got overbought on Oct. 21, and a downturn was expected from its $0.15 high. 

It fell by 14%, but since Oct. 26, it has significantly recovered and remains in an uptrend. Despite the recovery, DOGE could still be in a corrective stage with more downside. 

DOGE Price Prediction

The hourly chart shows DOGE appears in an ascending channel, with resistance tested for the third time on Oct. 21.

Although the five-wave impulse count has some inconsistencies, this ascending channel could represent the first sub-wave of a potential bullish phase.

A downward correction was anticipated as the price reached a higher high at significant resistance, and the daily chart shows an overbought RSI. This downward movement could correct to the 0.5 Fibonacci level at $0.11.

Alternatively, if the ascending channel’s structure proves corrective, this could signal a continuation of the downtrend, possibly bringing DOGE to new lows below August levels.

In the third scenario, we could see only a minor pullback before further upward movement.

The momentum and depth of the expected downturn will clarify the most likely path forward.

Ideally, a strong upside move followed by a retest of the support level would present an optimal setup for DOGE.