Dogecoin’s price movements have been the subject of much speculation prior to now few months by various crypto analysts, with most of the analyses based on its pattern repetition in market cycles. A recent evaluation posted on the TradingView platform delves deeply into Dogecoin’s technical outlook with indicators similar to Fibonacci levels, Elliott Wave Theory, and the Wyckoff Method to forecast each downside and upside price targets for the cryptocurrency.

Macro Evaluation: Elliott Waves And Fibonacci Levels Show Liquidity Zones

Based on the analyst, Dogecoin’s price has been following a transparent Elliott Wave structure ranging from its bear market low of $0.045 in 2022 until its recent multi-year peak of $0.48 in December 2024. Interestingly, this projection suggests that the five impulse waves have already been accomplished, and the subsequent stage is the formation of the ABC corrective waves. Waves A and B have already played out, leaving wave C to finish the structure and create the last corrective wave within the pattern.

With this correction in mind, the analyst used Fibonacci levels for extra insights into the way it plays out. Using a trend-based Fibonacci retracement, the analyst predicted that Dogecoin could retrace to $0.213 as the worth mark aligns well with the 0.382 Fib retracement level from its recent peak in December.

Similarly, the 0.618 Fibonacci retracement level, calculated from the wave 4 low to the wave 5 peak, suggests a goal of $0.235. A green box zone between these two levels is highlighted because the likely liquidity zone before the subsequent bullish leg. 

The correction, if it happens, doesn’t necessarily spell doom for Dogecoin. It is because the meme coin has consistently revisited the 0.382 level during past market cycles before surpassing its all-time highs. Due to this fact, a repeat of this behavior could set the stage for an additional Dogecoin price rally over an extended timeframe that can eventually break above $0.73 and set a latest all-time high.

Zooming In: Wyckoff Phases And Short-Term Prediction

When analyzing the present price motion, the analyst identifies Wyckoff Distribution Schematic #2 because the prevailing pattern for Dogecoin. This method separates market movements into phases (A to E) to predict price behavior. Based on the evaluation, Dogecoin is transitioning through these phases and is anticipated to enter phase E by January 23, 2025.

Further examination of the 4-hour chart reveals an ABC corrective pattern, with wave C anticipated to mirror the magnitude of wave A’s decline. The analyst calculates this drop as aligning perfectly with the 0.382 Fibonacci goal at $0.213. Using additional Fibonacci retracements and extensions, short-term support and resistance zones have been identified, further reinforcing the $0.213 to $0.235 liquidity zone. With this, the analyst predicted a Dogecoin price bottom between January 30 and February 3, 2025, before it transitions toward a bullish trend.

Looking ahead, the analyst suggests that Dogecoin is constructing momentum for a major upward movement once it completes its correction. Notably, the analyst predicted that Dogecoin will rebound and reach $1.9 once the correction is accomplished.

On the time of writing, Dogecoin is trading at $0.3577.

Featured image from Adobe Stock, chart from Tradingview.com