Emily Walker
Recent months have seen significant discussion around Dogecoin’s price fluctuations, as various cryptocurrency analysts speculate on its future based on historical market patterns. A new in-depth analysis shared on TradingView examines Dogecoin’s technical perspective, employing tools like Fibonacci levels, Elliott Wave Theory, and the Wyckoff Method to predict potential price movements.
Overall Analysis: Understanding Elliott Waves and Fibonacci Levels
The analyst’s insights indicate that Dogecoin has been moving according to a distinct Elliott Wave pattern, starting from its low of $0.045 in 2022 to its recent high of $0.48 in December 2024. This analysis posits that five key upward waves have been completed, and now, we are likely seeing the formation of ABC corrective waves, with A and B already established and C yet to come to completion.
Taking this correction into account, the analyst applied Fibonacci levels for deeper insights. Using a trend-based Fibonacci retracement, they anticipate that Dogecoin might decline to around $0.213, as this level corresponds well with the 0.382 Fibonacci retracement from its December peak.
In addition, the 0.618 Fibonacci retracement level calculated from the low of wave 4 to the peak of wave 5 suggests a target around $0.235. A critical liquidity zone, highlighted between these two price points, is expected to support future bullish movements.
However, a potential correction should not be seen as a negative sign for Dogecoin. Historically, the token has revisited the 0.382 level during prior market cycles before exceeding its all-time highs. A similar scenario could set the stage for another rally that ultimately breaks past $0.73, establishing a new record high.
Deeper Analysis: Wyckoff Phases and Short-Term Price Predictions
Upon examining current market trends, the analyst notes that Dogecoin is following the Wyckoff Distribution Schematic #2, which segments market phases (from A to E) to project pricing. The analysis suggests that Dogecoin is currently transitioning through these phases and is poised to reach phase E by January 23, 2025.
A closer look at the 4-hour chart highlights an ABC corrective pattern, with wave C expected to follow the decline seen in wave A. This drop aligns with the 0.382 Fibonacci target at $0.213. Additional Fibonacci analysis has pinpointed short-term support and resistance zones, reinforcing the significance of the $0.213 to $0.235 liquidity area. The analyst estimates that Dogecoin may hit a low between January 30 and February 3, 2025, before shifting toward a bullish momentum.
Looking forward, the analyst foresees that Dogecoin is gearing up for a notable upward shift after it finishes its correction. They predict a strong rebound for Dogecoin, potentially hitting $1.9 once the correction concludes.
Currently, Dogecoin’s trading price stands at $0.3577.