Dogecoin’s price movements have been the subject of much speculation in the past few months by various crypto analysts, with many of the analyses based on its pattern repetition in market cycles. A recent analysis posted on the TradingView platform delves deeply into Dogecoin’s technical outlook with indicators such as Fibonacci levels, Elliott Wave Theory, and the Wyckoff Method to forecast both downside and upside price targets for the cryptocurrency.
Macro Analysis: Elliott Waves And Fibonacci Levels Show Liquidity Zones
According to the analyst, Dogecoin’s price has been following a clear Elliott Wave structure starting from its bear market low of $0.045 in 2022 until its recent multi-year peak of $0.48 in December 2024. Interestingly, this projection suggests that the five impulse waves have already been completed, and the next stage is the formation of the ABC corrective waves. Waves A and B have already played out, leaving wave C to complete the structure and create the last corrective wave in the pattern.
With this correction in mind, the analyst used Fibonacci levels for additional insights into how it plays out. Using a trend-based Fibonacci retracement, the analyst predicted that Dogecoin could retrace to $0.213 as the price mark aligns well with the 0.382 Fib retracement level from its recent peak in December.
Similarly, the 0.618 Fibonacci retracement level, calculated from the wave 4 low to the wave 5 peak, suggests a target of $0.235. A green box zone between these two levels is highlighted as the likely liquidity zone before the next bullish leg.
The correction, if it happens, doesn’t necessarily spell doom for Dogecoin. This is because the meme coin has consistently revisited the 0.382 level during past market cycles before surpassing its all-time highs. Therefore, a repeat of this behavior could set the stage for another Dogecoin price rally over a longer timeframe that will eventually break above $0.73 and set a new all-time high.
Zooming In: Wyckoff Phases And Short-Term Prediction
When analyzing the current price action, the analyst identifies Wyckoff Distribution Schematic #2 as the prevailing pattern for Dogecoin. This method separates market movements into phases (A to E) to predict price behavior. According to the analysis, Dogecoin is transitioning through these phases and is expected to enter phase E by January 23, 2025.
Further examination of the 4-hour chart reveals an ABC corrective pattern, with wave C anticipated to mirror the magnitude of wave A’s decline. The analyst calculates this drop as aligning perfectly with the 0.382 Fibonacci target at $0.213. Using additional Fibonacci retracements and extensions, short-term support and resistance zones have been identified, further reinforcing the $0.213 to $0.235 liquidity zone. With this, the analyst predicted a Dogecoin price bottom between January 30 and February 3, 2025, before it transitions toward a bullish trend.
Looking ahead, the analyst suggests that Dogecoin is building momentum for a significant upward movement once it completes its correction. Notably, the analyst predicted that Dogecoin will rebound and reach $1.9 once the correction is completed.
At the time of writing, Dogecoin is trading at $0.3577.
Featured image from Adobe Stock, chart from Tradingview.com
