- Dogecoin (DOGE) recently experienced a short-term decline, dropping from above $0.21.
- An analyst on X using Elliott Wave Theory suggests DOGE has completed its corrective Wave (2) and is poised to enter a powerful Wave (3) expansion.
- Independent analysis by Ali Martinez highlights key support at $0.16 and a mid-channel target of $2.74.
Dogecoin has been showing volatility lately, with its price dropping from above $0.21 to below $0.191 before rebounding to around $0.20. This 24-hour decline of 3.9% comes amid broader market fluctuations; however, over the past 7 days, DOGE has managed an 8.0% gain even as its 14- and 30-day performance have reflected declines of 20.9% and 24.1%, respectively.
An analyst on X has examined Dogecoin’s market structure through the lens of Elliott Wave Theory, identifying that DOGE has likely completed its corrective Wave (2). The analyst notes that DOGE is now forming an early (1)-(2) subwave structure, setting the stage for a powerful Wave (3) expansion.
The recent price drop, which aligned with a retracement near the 0.618 Fibonacci level, suggests that the corrective phase might be nearing its end. Based on a 1.618 Fibonacci extension of Wave IV, the medium-term projection indicates that DOGE could gain approximately $3.17, bringing its value to around $3.37. Over a longer timeframe, the wave structure even points toward potential movement as high as $8.5.
Dogecoin Key Support and Resistance Levels
Independent analyst Ali Martinez provided additional insights into DOGE’s price action, noting that it is trading within a long-term ascending parallel channel that supports a bullish market structure despite recent volatility.
Currently, DOGE hovers near a crucial support level, with the lower boundary at $0.16 playing a key role. A strong hold at this level could trigger a rebound toward a mid-channel target of $2.74, a level that aligns with the 1.272 Fibonacci extension on DOGE’s weekly chart.
However, challenges remain. At the time of analysis, DOGE was trading at $0.203 after a 15% drop over 24 hours. For a sustained bullish recovery, DOGE must first break through an immediate resistance at approximately $0.56958—the 1.00 Fibonacci level. If bullish momentum intensifies, DOGE could continue its upward movement toward an upper boundary of around $6.24, a key resistance level corresponding to the 1.414 Fibonacci extension.
