Key Takeaways
Dogecoin (DOGE) is setting up for a significant price move, supported by Elliott Wave structures and Fibonacci retracements across daily and hourly time frames.
The analysis will explore DOGE’s current market behavior and potential price trajectories.
The daily chart reveals that DOGE is in Wave 4 of a five-wave Elliott Wave structure, having completed a corrective pattern within a descending wedge.
The correction ended near $0.33, aligning with the 0.382 Fibonacci retracement on Dec. 19. This level has provided a robust foundation for DOGE’s recovery toward higher price zones.
Wave 3’s peak at $0.48 on Dec. 8. marked the previous high before the correction.
The ongoing consolidation phase indicates that DOGE is preparing for the next leg up, which could be the commencement of Wave 5.
From the Dec. 20 low, we saw the formation of the ascending channel to a high of $0.43 on Jan. 18. Although it is still unclear whether this is the beginning of the new bull phase, the structure displays higher highs and higher lows.
The daily chart’s Relative Strength Index (RSI) shows recovery from oversold levels, supporting a potential bullish reversal.
Today, the price bounced from the ascending channel support, which could be an early sign of the coming uptrend. However, DOGE faces resistance near $0.38, whose breakout will signal renewed upward momentum.
The hourly chart provides a more granular perspective of DOGE’s recent price action, confirming the completion of Wave (v) within the ascending channel. After a corrective (a)-(b)-(c) structure, DOGE has rebounded off the $0.33 support zone.
This support aligns with the 0.382 Fibonacci retracement of the prior impulse wave.
Worth noting is that according to the Elliott Wave Theory, this five-wave structure can only be a leading diagonal as wave (iv) overlaps with wave (i). Still, the structure should take a triangular shape instead of a now-seen channel.
This is why the ascending channel could still be considered part of the wave 4 correction as its second sub-wave, meaning another downtrend can bring DOGE to values around $0.24 before the correction ends.
However, as the price now retested the ascending channel support and made a bounce, the likelihood of this being a bullish structure is higher.
The first sign of confirmation will be surpassing its wave (v) high of $0.44. A sustained breakout above this level would likely see DOGE rally toward $0.51, where the 1.0 Fibonacci extension resides.
The 1.618 extension at $0.62 is the projected final target for Wave 5.
RSI on the hourly chart suggests strengthening bullish momentum, with no immediate signs of overbought conditions.
However, a pullback to $0.33 (0.382 Fibonacci retracement) is possible before further upward movement. Volume confirmation and higher lows are key to sustained bullish action.
This analysis suggests that DOGE has strong potential for upside movement, provided it clears immediate resistances and maintains support at critical Fibonacci levels.