In recent days, Dogecoin has faced a steady decline, lingering beneath the $0.35 threshold.
This downward trend could continue in the short term.
Yet, despite these fluctuations, a strong bullish sentiment persists among Dogecoin enthusiasts.
Analysts’ technical evaluations hint at the possibility of the meme-inspired cryptocurrency achieving new all-time highs within the current market cycle.
Decoding Dogecoin’s Elliott Wave Patterns
The Elliott Wave theory is a widely used approach in technical analysis, showcasing five-wave impulse patterns that good traders watch closely.
The completion of the 5th wave typically marks a significant surge in price, shortly followed by a corrective phase.
In his insights, @btcbalo illustrated that Dogecoin appears to be in the midst of its 5th wave, implying that there’s still potential for growth before any price retracement.
He highlighted a long-term chart that tracked the cryptocurrency’s price movements through monthly candlesticks, demonstrating that Dogecoin has been following the classic Elliott Wave pattern since 2017, with each wave evolving over several years.
According to this theory, the current 5th wave likely kicked off in late 2023.
If this is indeed correct, it suggests we might be on the verge of a lengthy bullish period extending into the coming years.
If the pattern holds true, Dogecoin could potentially experience gradual growth through 2025 and possibly into 2026 until this cycle reaches its zenith.
Analyzing Dogecoin’s Potential Price Trajectory
The projections from the Elliott Wave theory imply that the 5th wave usually surpasses the peak established in the 3rd wave.
For Dogecoin, this bodes well for the eventual rise to uncharted territory.
The peak of the 3rd wave represents Dogecoin’s highest recorded price of $0.7316, a crucial resistance level that the crypto must overcome.
While @btcbalo didn’t specify exact price targets, his analysis hinted at an ambitious peak around $5 for Dogecoin.
Achieving this target would trigger the onset of the Elliott ABC corrective phase.
However, he cautioned that such a peak could lead to a significant downturn as market greed tends to escalate.
After reaching the anticipated $5 mark, Dogecoin might plummet back down to approximately $0.20 as the market transitions into a bearish phase.
Currently, Dogecoin is trading at $0.3265, which represents a slight decline of 0.8% in the past 24 hours and a more significant drop of 6.4% over the preceding week.
If the projected rally materializes, propelling Dogecoin toward that $5 target, it would represent a staggering increase of around 1,430% from its current valuation.
Source: Bitcoinist
