Key Takeaways
Dogecoin (DOGE) has recently experienced significant price fluctuations, with its journey marked by a yearly high and subsequent corrections.
Despite a bullish outlook at various points, recent movements suggest a more cautious approach. This analysis delves into DOGE‘s current trends and price predictions, providing insights into its potential future movements.
On March 28, DOGE achieved its yearly high of $0.22, completing a five-wave pattern that started in October 2023. Following this peak, DOGE entered an extended correction within a descending triangle.
During this phase, the price retraced to the 0.768 Fibonacci level, around $0.090, aligning with a significant horizontal support zone.
After bouncing off this support level, DOGE encountered descending resistance on Sept. 14, resulting in a rejection.
Despite this temporary setback, the overall outlook for DOGE remained bullish, as it formed a higher low during the subsequent retracement.
Since Sept.16, there has been a new upward movement, breaking above the descending resistance, which may indicate the onset of a new bullish phase.
Previously, we have labeled the correction count as the ABCDE correction, with the uptrend from Sept. 6 being the first five-wave impulse in a new bull phase. However, this count was invalidated after DOGE fell below $0.10 on Oct. 3.
There is still a slight chance this bullish projection will come true, but the subsequent downturn will nullify its recent 14% rise, presenting a bearish outlook.
The hourly chart reveals a five-wave impulse from Sept. 6 to 13, followed by a three-wave decline. These movements represent the initial two sub-waves of a new upward sequence.
As DOGE continued to advance, wave three was completed on Sept. 28, high at $0.13, and a pullback for wave four was awaited.
However, this scenario’s price fell further than expected, invalidating the possibility. This left its previously seen uptrend as a three-wave ABC correction to the upside, meaning the downtrend since Sept. 28, followed by October’s recovery, are the two sub-waves of further downside movement.
As such, we can now expect DOGE to advance lower and reach some of the Fibonacci extension levels below. Our first target would be at the same length as the first downtrend, which is optimal for the 1.272 at $0.076.
Going back to our count on the daily chart, it would mean that instead of the counted ABCDE correction and a starting uptrend since Sept. 6, we saw the completion of the WXY waves with the rise since Sept. 6 being its second wave X and is going to be followed by another drop for its wave Z to conclude this WXYXZ correction.