Elliott Wave Theory Suggests Dogecoin Price to $8.5
An analyst on X identified Elliott Wave patterns, suggesting Dogecoin completed a corrective phase and may enter a powerful wave (3) expansion.Dogecoin (DOGE) experienced a sharp decline, dropping from above $0.21 to below $0.191 before rebounding to approximately $0.20. The meme cryptocurrency registered a 3.9% decline over the past 24 hours, indicating a short-term downtrend. However, despite this dip, DOGE maintained a 7-day gain of 8.0%. From a broader view, its 14-day and 30-day performance reflected declines of 20.9% and 24.1%, respectively. Over the past hour, DOGE managed a modest 0.6% recovery.Impending Move for Dogecoin PriceWith the notable fluctuation, an analyst on X examined Dogecoins market structure using the Elliott Wave Theory. The analyst identifies primary wave formations (1, 2, 3, 4, 5) along with corrective patterns (A, B, C). According to this assessment, DOGE has likely completed a minor corrective wave (2) and is in the early stages of forming a (1)-(2) subwave structure. This setup could potentially lead to the emergence of a powerful wave (3), signaling a shift in momentum.The recent price drop aligns with a retracement around the 0.618 Fibonacci level, indicating that the corrective phase might be nearing completion. If Dogecoin breaks out of this correction zone, it could validate the expansion of wave (3). The medium-term projection based on the 1.618 Fibonacci extension of Wave IV suggests that DOGE could gain $3.17, pushing its value to approximately $3.37. Further, over a longer timeframe, the wave structure indicates a potential movement toward wave three at $8.5.Crucial Support and Resistance Levels IdentifiedMarket analyst Ali Martinez provided an independent evaluation of DOGE on X, highlighting the possibility of a 2,871% surge in DOGEs price. He noted that the asset remains within a long-term ascending parallel channel, maintaining a bullish market structure despite recent fluctuations.Currently, DOGE is hovering near a major support level, which could be instrumental in determining its next move. According to Martinez, the lower boundary support at $0.16 remains a crucial threshold. A strong hold at this level could trigger a rebound toward $2.74, which is positioned as the mid-channel target. This projection aligns with the 1.272 Fibonacci extension level on DOGEs weekly chart.Challenges on the Road to Higher LevelsAt the time of analysis, Dogecoin traded at $0.203, recording a 15% drop within 24 hours. Per the analysis, before attempting to reach the mid-channel target, DOGE must first surpass immediate resistance at $0.56958, which corresponds to the 1.00 Fibonacci level.If bullish momentum intensifies, DOGE could push higher toward the upper boundary of $6.24. This price point aligns with the 1.414 Fibonacci extension, marking a significant resistance level.
Text source: The Crypto Basic
