Dogecoin (DOGE) Elliott Wave Analysis: Cup and Handle Suggests Price Bottom

Dogecoin (DOGE) has been in a corrective phase after a strong impulse wave, forming a potential reversal structure. Recent price action suggests that a bottom may be forming, with bullish patterns emerging on the lower timeframe.

DOGE Price Analysis 

Dogecoin’s (DOGE) higher timeframe analysis suggests that the asset recently completed a five-wave impulsive structure, followed by an extended corrective phase. The five-wave rally peaked near $0.486 before undergoing an ABC correction, which drove the price down to a local low of $0.20.

This was a brief downward spike as the price managed to pull up above 0.618 Fibonacci level at $0.24.Consolidation began above $0.24 marking a crucial support zone, forming a potential bottoming structure.

A key observation from the 4-hour chart is the emergence of a rounded bottom, often indicative of a trend reversal. The price has been making higher lows since bottoming out at the start of February, with an upward-sloping Relative Strength Index (RSI) supporting the bullish narrative. The RSI is gradually climbing from oversold territory, showing early signs of increasing momentum.

Fibonacci retracement levels provide key insights into resistance zones. The 0.5 retracement level at $ 0.287 is a crucial barrier; a breakout above this level would indicate bullish strength and could push the price toward $0.33464 (0.382 Fibonacci retracement). Furthermore, DOGE has displayed a significant decline in selling volume, suggesting that sellers are losing control, potentially paving the way for a bullish breakout.

Another important technical pattern on the 4-hour chart is the cup-and-handle formation. If the handle formation completes successfully, DOGE could confirm a bullish breakout, signaling a move toward higher Fibonacci levels. However, failure to break key resistance could result in another retest of support levels near $0.24-$0.25.

DOGE Price Prediction 

On the lower timeframe (1-hour), DOGE’s price action reveals an early-stage cup-and-handle breakout attempt. This pattern typically signifies a trend reversal, with an expected upward breakout once the neckline is broken. The neckline resistance lies near $0.28, coinciding with the 0.5 Fibonacci retracement level. 

If DOGE successfully breaks above this region, a surge toward $0.33 (0.382 Fibonacci) and potentially $0.39 (0.236 Fibonacci) becomes likely.

Elliott Wave projections suggest that DOGE may have completed a corrective wave C and could be in the early phase of a new five-wave impulse cycle. In this scenario, the current price action aligns with wave 1 of a bullish sequence. If this outlook holds, the next move should see DOGE pushing toward $0.39-$0.40, with intermediate pullbacks offering potential reentry points.

The RSI on the 1-hour chart is displaying a bullish divergence, which further supports the case for an upward move. The recent higher low of $0.24 corresponds with higher lows on the RSI, indicating growing bullish pressure. However, a failure to break resistance at $0.287 could lead to a short-term retracement, with support at $0.24-$0.25 (0.618 Fibonacci retracement).

If DOGE sustains momentum above $0.28, the price could rally toward the next Fibonacci levels. However, if price action falters, a retest of the critical support zone at $0.17414 remains a possibility. Maintaining above this level would be crucial to preserving the bullish setup.

Overall, DOGE is showing promising signs of reversal, with a cup-and-handle pattern and bullish momentum gaining traction. A decisive breakout above $0.28 could trigger a rally toward $0.39, while failure to sustain above $0.24 might result in further consolidation.

Key Levels to Watch

• Immediate Resistance – $0.28776 (0.5 Fibonacci retracement).
• Major Resistance – $0.33464 (0.382 Fibonacci retracement).
• Breakout Target – $0.39264 (0.236 Fibonacci retracement).
• Immediate Support – $0.24088 (0.618 Fibonacci retracement).
• Critical Support – $0.17414 (0.786 Fibonacci retracement).
• Short-Term Target – Above $0.39 if bullish momentum sustains.
• Invalidation Zone – Below $0.17414, signaling further downside risk.