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Dogecoin (DOGE) Price Finds Support in Channel, Poised for Potential Breakout

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Bullish Wave Formation: Elliott Wave analysis shows DOGE approaching Wave 5.
  • Key Fibonacci Support Levels: Support holds above 0.382 retracements ($0.33).
  • RSI indicates potential bullish momentum on lower time frames.

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.

DOGE Price Analysis

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.

DOGE price analysis
DOGEUSD wave 5 in development | Credit: Nikola Lazic/TradingView 

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.

DOGE Price Prediction 

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. 

DOGE price prediction
DOGEUSD potential rally ahead | Credit: Nikola Lazic/TradingView 

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.

Key Levels to Watch

  • Immediate Resistance: $0.38 (0.236 Fibonacci retracement).
  • Secondary Resistance: $0.44 (0.618 Fibonacci extension).
  • Major Resistance: $0.62 (1.618 Fibonacci extension, Wave 5 target).
  • Key Support: $0.33 (0.382 Fibonacci retracement).
  • Critical Support: $0.28 (0.5 Fibonacci retracement, invalidation of bullish scenario).

This analysis suggests that DOGE has strong potential for upside movement, provided it clears immediate resistances and maintains support at critical Fibonacci levels.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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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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