The price movements of Dogecoin were the The subject of much speculation In recent months by various crypto analysts, with much of the analysis based on repeating the patterns in market cycles. A recent analysis published on the TradingView platform delves deep into Dogecoin’s technical outlook using indicators such as Fibonacci levels, Elliott wave theory, and the Wyckoff method to forecast both the downside and upside price targets for the cryptocurrency .
Macro analysis: Elliott waves and Fibonacci values show liquidity zones
According to the analyst, The price of Dogecoin is a clear tracker Elliott wave structure Starting from its bear market low of $0.045 in 2022 to its recent multi-year peak of $0.48 in December 2024. Interestingly, this projection suggests that the five impulse waves have already completed, and the next stage is the formation of the ABC -corrective waves. Waves A and B have already played, Exit wave C to complete the structure and create the final corrective wave in the pattern.
With this in mind, the analyst used Fibonacci values for additional insight into the selection. Using a trend-based Fibonacci retracement, the analyst predicted that Dogecoin could retrace to $0.213 as the price note was well aligned with the .382 Fib retracement level from its recent peak in December.
Likewise the 0.618 Fibonacci retracement level, Calculated from wave 4 to wave 5 peak suggests a target of $0.235. A green box zone between these two levels is highlighted as a likely liquidity zone before the next bullish leg.
The correction, if it happens, is not necessarily doom for Dotecoin. This is because the meme coin has consistently revisited the 0.382 level over the past market cycles before surpassing its all-time highs. Therefore, a repeat of this behavior could set the stage for another rally for dotecoin price over a longer time frame that will ultimately break above $0.73 Set a new all-time high.
Zooming in: Wyckoff phases and short-term forecasting
Analyzing the current price action, the analyst identifies the #2 Wyckoff distribution pattern as the dominant pattern for Dogecoin. This method separates market movements into phases (a to e) to predict price behavior. According to the analysis, Dotecoin is going through these phases and is expected to enter Phase E by January 23, 2025.
Further examination of the 4-hour chart shows an ABC correction pattern, with wave C reflecting the size of wave A’s decline. The analyst calculates this drop as perfect with the 0.382 Fibonacci target at $0.213. Using additional Fibonacci retracements and extensions, short-term support and resistance zones were identified, further strengthening the liquidity zone from $0.213 to $0.235. With this, the analyst predicted a Dogecoin price decline between January 30 and February 3, 2025 before moving towards a bullish trend.
Looking ahead, the analyst suggests that Dogecoin is building significant bullish momentum Once it has completed its correction. Notably, the analyst predicted that Dogecoin will rally and reach $1.9 after the correction is complete.
At the time of writing, Dotecoin is trading at $0.3577.
Featured image from Adobe Stock, chart from tradingview.com