Dogecoin worth has returned to a degree that should be watched closely for long-term worth motion, as multi-year chart constructions start to resemble situations that preceded its final historic rally.
Nonetheless spending years correcting from its 2021 peak, Dogecoin is now buying and selling inside a well-defined accumulation zone on the upper timeframe, in line with a brand new technical evaluation shared by Crypto Patel on X. The analyst famous that this part could also be setting the stage for a macro Wave 5 growth that takes the meme coin to new worth highs, offered essential assist ranges proceed to carry.
Dogecoin Sitting In Excessive-Timeframe Accumulation Zone
Technical roadmap on the 2-week candlestick timeframe chart breaks Dogecoin’s worth motion after the 2021 worth excessive into Elliott Wave phases. Wave 1 and Wave 2 are marked as full, adopted by a powerful Wave 3 advance that topped round $0.48 in December 2024. Since then, DOGE has entered a Wave 4 corrective part, forming a descending channel that has guided worth decrease for over a yr with out invalidating the broader bullish construction.
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This descending channel is essential to this technical evaluation. Comparable corrective habits appeared simply earlier than Dogecoin’s final main growth in 2021, the place the worth consolidated for an prolonged interval earlier than breaking upward decisively.
Dogecoin is now trading inside a high-timeframe demand zone that acted as the bottom for its 2020 to 2021 parabolic rally. This space sits simply above a long-term horizontal assist degree that has held agency for an prolonged interval, together with by way of the depths of the 2022 bear market.
In line with the analyst, this area between $0.115 and $0.09 is a transparent zone of sustained accumulation, the place shopping for strain has constantly prevented deeper breakdowns.
Wave 5 Targets Multi-Yr Enlargement Path
If the buildup zone continues to carry and the worth breaks out of the descending channel, then the following projection is the playout of a Wave 5 impulse transfer. Crypto Patel’s mapped targets for this part begin round $0.28, adopted by increased extensions at $1, $2, and in the end $4.
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On the time of writing, Dogecoin is trading at $0.1247. Subsequently, from present ranges, that ultimate goal of $4 would symbolize a transfer of over 3,100%. Nevertheless, that is small in comparison with the magnitude of Dogecoin’s earlier macro growth of 26,800% within the earlier cycle.
However, the evaluation famous that invalidation can be nicely outlined. A weekly shut under $0.06 would break the higher-timeframe construction and invalidate the Wave 5 thesis. Till then, the technical evaluation suggests Dogecoin is in a compression part the place draw back threat is more and more outlined, however upside growth into new worth highs is feasible if Dogecoin embarks on the ultimate impulse of the cycle.
Featured picture from Getty Pictures, chart from Tradingview.com
