DOGE and Litecoin (LTC) Price Analysis- Recovery Seen But Bearish Continuation Still Possible

Both DOGE and LTC are at crucial pivot points as they have shows some bullish signs, recovering from the oversold zone. A confirmed breakout could lead to significant upside, while failure to hold key supports may extend corrective phases.

Dogecoin (DOGE) Price Analysis

Dogecoin (DOGE) has been undergoing an ABC correction following its previous five-wave impulse to $0.43 on Jan 18, falling to 0.786 Fibonacci retracement level at $0.30 on Jan 27.

A bounce was seen leading to a 9.4% recovery but DOGE failed to regain the 0.618 Fibonacci level. This level is critical, as a continuation below it could accelerate losses toward $0.30 (0.786 Fib) or $0.26 (1.0 Fib). A move above it could on the other hand confirm the bullish momentum, needed for a sustained uptrend. 

The 4-hour chart Relative Strenght Index (RSI) divergence suggests bullish momentum is forming, increasing the probability of a reversal at these levels. Its Jan. 27 low lead to the oversold conditions, and could have indicated at the limited downside potential. 

If DOGE holds above $0.33, it could begin a new impulsive structure, initially targeting $0.37 (0.5 Fib) and $0.40 (0.382 Fib). A breakout above these resistances would confirm bullish continuation, with an extended rally possible toward the previous high at $0.48. Failure to clear these levels may result in prolonged consolidation within the correction phase.

Elliott Wave analysis suggests DOGE is completing wave (c) of the correction, meaning the market is near a potential bottom. A decisive breakout above descending resistance would further validate a bullish reversal. However, a rejection at resistance could delay recovery, extending the correction before a new impulse begins.

Either way some immediate short-term uptrend continuation would be expected considering that the price previously reached oversold conditions. However the bearish perspective will remain untacked if the price gets rejected below the 0.5 Fibonacci level which serves as a pivot point. 

If this happens it could mean that DOGE is developing the third sub-wave of the larger corrective structure since December whose ascending channel now labeled as a five-wave impulse is instead corrective and represents the second sub-wave.  

Key Levels to Watch

• Resistance: $0.37 (0.5 Fib), $0.40 (0.382 Fib), $0.48 (previous high).
• Support: $0.33 (0.618 Fib), $0.30 (0.786 Fib), $0.26 (1.0 Fib).
• Invalidation: Below $0.26 weakens bullish potential.

Litecoin (LTC) Price Analysis

Litecoin (LTC) is consolidating within a contracting triangle, forming a corrective ABCDE pattern as it approaches a breakout decision. The price currently fluctuates between Fibonacci support at $105 (0.5 retracement) and resistance at $127 (0.236 Fib level) since its last resistance interaction. A breakout above this wedge would indicate the start of a new bullish wave, potentially leading LTC toward $146 and higher.

Elliott Wave labeling suggests LTC ifinished its wave (c) of the correction and is now likely to develop two more sub-waves (d) and (e). If LTC maintains support above $105-$96, it strengthens the bullish case. However, a failure to hold $96 (0.618 Fib) could push the price toward $82 (0.786 Fib), delaying any bullish breakout. Volume confirmation is necessary for validation.

The Relative Strenght Index (RSI) remains neutral after a recovery from oversold leves, indicating LTC could move in either direction depending on market sentiment. If bullish momentum builds and LTC breaks $127 resistance, it would confirm the start of wave 3, targeting $146 and beyond. This move aligns with Fibonacci extension levels, reinforcing a strong breakout scenario.

Failure to reclaim $127 may result in further consolidation before a confirmed breakout. As long as LTC holds trendline support, the broader structure remains bullish. If LTC falls below $82, it could invalidate the bullish setup, shifting momentum in favor of extended downside corrections.

Key Levels to Watch

• Resistance: $127 (0.236 Fib), $146 (previous high).
• Support: $105 (0.5 Fib), $96 (0.618 Fib), $82 (0.786 Fib).
• Invalidation: Below $82 weakens bullish continuation.