Dogecoin price movements have been subject to much speculation over the past few months by various crypto analysts, with many of the analyzes based on its pattern repetition in market cycles. A recently published analysis on the TradingView platform digs deep into Dogecoin’s technical outlook using indicators such as Fibonacci levels, Elliott Wave Theory and the Wyckoff method to predict 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 followed a clear Elliott Wave Structure from its bear market low of $0.045 in 2022 to its latest multi-year high of $0.48 in December 2024. Interestingly, this forecast suggests that the five impulse waves have already ended, and the next step is the formation of ABC corrective waves. Wave 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 further insights into how it works. Using a trend-based Fibonacci retracement, the analyst predicted that Dogecoin could go back to $0.213 as the price tag is well in line with the 0.382 Fib retracement level from its recent peak in December.
Similarly, 0.618 is Fibonacci retracement level, counting from wave 4 low to wave 5 high, suggests a target of $0.235. A green box zone between these two levels is marked as the likely liquidity zone before the next bullish stage.
The correction, if it happens, does not necessarily spell doom for Dogecoin. This is because the meme coin has consistently returned to the 0.382 level in previous 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 time frame that will eventually break above $0.73 and set a new all-time high.
Zoom in: Wyckoff phases and short-term predictions
Analyzing the current price action, the analyst identifies the Wyckoff Distribution Schematic #2 as the prevailing pattern for Dogecoin. This method divides 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, where wave C is expected to mirror the size of wave A’s decline. The analyst calculates that this decline is perfectly in line 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 turning into a bullish trend.
Looking ahead, the analyst suggests that Dogecoin is building momentum for a significant upward move when it has finished its correction. Notably, the analyst predicted that Dogecoin will recover and reach $1.9 once the correction is over.
At the time of writing, Dogecoin is trading at $0.3577.
Featured image from Adobe Stock, chart from Tradingview.com
