Emily Walker
Dogecoin continues to experience a downward trend this week, with its price remaining stable below $0.35 for the foreseeable future. Despite this, there is still a sense of optimism among investors as technical evaluations suggest that Dogecoin might be on the verge of potential growth. Analysts believe that the cryptocurrency could be poised to achieve new heights in this cycle.
According to crypto analyst @btcbalo on platform X, Dogecoin is currently in a bullish segment as per the Elliott Wave theory and has yet to finish its 5th wave. This suggests a possible increase in value before the cycle concludes.
Understanding Dogecoin’s Elliott Wave Dynamics
The Elliott Wave theory is a popular framework in technical analysis that identifies patterns consisting of five upward-moving waves. The 5th wave typically represents the last surge in a price rally before a corrective phase kicks in.
@btcbalo noted on X that Dogecoin’s 5th wave is still in progress, suggesting further increases in price prior to any corrections. His analysis was supported by long-term candlestick charts indicating that Dogecoin has been aligning with the Elliott Wave pattern since 2017, with distinct phases unfolding over several years.
This analysis posits that Dogecoin’s current 5th wave likely started in late 2023, initiating what could become a prolonged bullish period preceding a significant market correction. If this wave indeed progresses as expected, DOGE might enjoy a steady rise well into 2025, potentially continuing its ascent into 2026 before concluding this cycle.
Projected Heights for DOGE Before Cycle Completion
The Elliott Wave forecasts suggest that the 5th wave often exceeds the peak of the 3rd wave, indicating that Dogecoin may be approaching a new all-time high. The previous 3rd wave peaked at $0.7316, which is likely to serve as a critical resistance point.
Although @btcbalo has not specified an exact target, some estimates place Dogecoin’s potential peak around $5. After hitting this target, a correction phase, known as Elliott ABC, is expected to commence. He also warned of significant risks following Dogecoin’s peak, advising traders to manage their expectations. His take suggests that after reaching $5, Dogecoin may experience a sharp decline, potentially plummeting to $0.20 as the market shifts to a bearish sentiment.
Currently, Dogecoin is valued at $0.3265, which marks a 0.8% decrease over the last 24 hours and a 6.4% drop over the past week. Should the expected rally occur and DOGE reach the $5 threshold, it would signify an increase of approximately 1,430% from its current valuation.