Dogecoin (DOGE) has been in a prolonged downtrend, forming a descending wedge pattern on the higher time frame. However, technical indicators suggest that a reversal may be imminent as the price approaches key Fibonacci retracement levels. A breakout from this structure could signal the beginning of a new bullish cycle for DOGE.
DOGE Price Analysis: Key Technical Indicators
The 4-hour chart for DOGE outlines a well-defined Elliott Wave structure. The price peaked at $0.48 in December, completing a five-wave impulse before entering an ABCDE correction. Currently, DOGE is testing the 0.786 Fibonacci retracement level at $0.171, a historically significant zone for reversals.
The descending wedge formation further indicates a potential breakout if bullish momentum strengthens. Additionally, the Relative Strength Index (RSI) is hovering near oversold territory, reinforcing the likelihood of a rebound. However, a failure to maintain support at $0.171 could push the price lower toward the $0.15 region.
Potential Bullish Breakout Levels
If DOGE breaks out from the wedge, the immediate resistance level to watch is $0.190, followed by the 0.618 Fibonacci retracement at $0.240. A confirmed breakout above this zone would indicate a possible trend reversal, potentially driving the price toward the 0.5 Fibonacci retracement level at $0.288.
On the 1-hour chart, DOGE is completing wave (v) of wave C within its corrective phase. A final dip to retest the wedge support could occur before a strong upward movement. The RSI on this timeframe is also showing early signs of bullish divergence, suggesting that selling pressure is waning.
DOGE Price Prediction: Key Levels to Watch
- Immediate Resistance: $0.190 (short-term resistance zone)
- Key Resistance: $0.240 (0.618 Fibonacci retracement)
- Critical Resistance: $0.288 (0.5 Fibonacci retracement)
- Immediate Support: $0.171 (0.786 Fibonacci retracement)
- Critical Support: $0.150 (descending wedge bottom)
- Short-Term Target: Above $0.240 if bullish momentum sustains
- Invalidation Zone: Below $0.150, signaling further downside potential
Also Read: Dogecoin Price at Risk of Dropping to $0.015 – Can It Still Surge to $2.5?
DOGE is approaching a critical juncture. If buyers step in at key support levels and drive a breakout above $0.240, a bullish trend could emerge. However, failure to hold above $0.150 would invalidate this scenario, leading to further declines. Traders should watch these key levels closely in the coming sessions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
