Dogecoin has continued its weekly decline into the previous 24 hours, with the value motion wanting like a continued consolidation beneath $0.35, at the very least within the subsequent few days. However, bullish sentiment continues to linger for Dogecoin, and technical evaluation means that the meme coin remains to be on monitor to reach new all-time highs this cycle.
According to crypto analyst @btcbalo, on social media platform X, Dogecoin remains to be within the midst of a bullish section within the Elliott Wave cycle, and the ultimate 5th wave has not but been accomplished. This signifies that the meme coin may see one other surge earlier than reaching its peak within the present cycle.
Dogecoin’s Elliott Wave Structure: Why The 5th Wave Matters
The Elliott Wave theory is a extensively used technical evaluation sample that identifies five-wave impulse patterns in value tendencies, with the 5th wave sometimes marking the ultimate push in an upward development earlier than a corrective section begins.
Sharing his insights on social media platform X, @btcbalo emphasised that Dogecoin’s 5th wave stays incomplete, suggesting that the value nonetheless has room to climb earlier than coming into a downward correction. His evaluation was accompanied by a month-to-month candlestick timeframe chart, which supplied a long-term view of Dogecoin’s value construction. The chart revealed that DOGE has been following the Elliott Wave sample since 2017, with every impulse wave unfolding over a number of years.
Based on this evaluation, Dogecoin’s 5th wave doubtless started in late 2023, marking the beginning of what could possibly be a multi-year bullish section earlier than a bigger corrective transfer takes place. If the wave rely holds true, DOGE might proceed to grind larger step by step all through 2025, probably extending its positive factors nicely into 2026 earlier than finishing the cycle.
How High Can DOGE Go Before The Cycle Ends?
Elliott Wave projections point out that the 5th wave usually surpasses the third wave’s peak, which means Dogecoin could possibly be headed towards a brand new all-time excessive. Notably, the third wave peaked on the asset’s present all-time excessive of $0.7316, which might be probably the most vital resistance to beat.
While @btcbalo didn’t provide an exact price target, projections on the chart put the Dogecoin peak someplace round $5. After reaching this value goal, the Elliott ABC corrective section is anticipated to begin. With this in thoughts, @btcbalo cautioned that the bear market after Dogecoin’s value peak could possibly be extreme, warning merchants in opposition to extreme greed. His evaluation means that following its projected $5 peak, the meme coin may expertise a pointy correction and fall again to $0.20 because the market enters a bearish section.
At the time of writing, Dogecoin is buying and selling at $0.3265, reflecting a 0.8% decline up to now 24 hours and a 6.4% drop over the past seven days. If the projected rally materializes and DOGE reaches the $5 mark, this is able to characterize a rise of about 1,430% from its present value.
Featured picture from iStock, chart from Tradingview.com
