Since the beginning of June, Dogecoin (DOGE) has experienced a significant downtrend, shedding more than 22% of its value. Despite this downward momentum, analysts believe DOGE could be on the brink of a major bullish reversal based on technical indicators.
Crypto analyst Big Mike on an X (formerly Twitter) post has revealed a bullish forecast for DOGE that suggests the meme coin could surpass the $1 threshold in this bull cycle.
The price prediction is based on the Elliott Wave theory, which is supported by a set of technical indicators.
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Dogecoin’s path to $1
According to Big Mike’s analysis, DOGE could reach $1 by late 2024 to 2025. The Elliott Wave theory, a technical analysis tool used to predict market cycles and price movements by identifying recurring fractal wave patterns, forms the basis of this prediction.
The latest analysis of the DOGE/USDT weekly chart shows a clear Elliott Wave pattern. DOGE has completed five major waves, peaking at approximately $0.68835. After this peak, DOGE entered a corrective phase, forming waves W, X, and Y, indicating a period of consolidation.
DOGE is now in a new upward cycle, with waves (1) and (2) already formed. The price action is also contained within an ascending channel pattern, providing a framework for predicting future movements and supporting the bullish outlook.
Wave (3) is projected to push DOGE to a higher resistance level, potentially between $0.35 and $0.50, based on Fibonacci extensions.
This wave is typically the strongest and most extended, driven by significant market momentum. The upper boundary of the ascending channel aligns with these targets, reinforcing the potential price range. Following wave (3), a corrective wave (4) is expected.
This wave usually retraces a portion of wave (3)’s gains, likely bringing DOGE down to a support range of $0.20 to $0.25. This correction within the ascending channel is essential for establishing a foundation for the final push.
Wave (5) is the final push in this cycle, and it could propel DOGE towards $1. The strength of wave (5) often correlates with market sentiment and external factors, such as broader cryptocurrency market rallies or significant news events.
The upper trendline of the ascending channel could guide this wave, potentially extending DOGE’s price significantly, especially if accompanied by strong trading volumes and investor confidence.
DOGE price analysis
At press time, DOGE is trading at $0.12, with a 4.85% decline in the 24-hour chart.
Although Dogecoin is experiencing volatility amidst bearish sentiments, the role of Dogecoin in payments, notably through Tesla‘s (NASDAQ: TSLA) acceptance of Dogecoin payments, could mainstream the cryptocurrency and contribute to its adoption as a viable digital payment method, potentially leading to increased demand and value.
While Dogecoin’s status as a meme coin means its price trends can rise and fall easily, analysts recommend cautious optimism.
Meme coins like Dogecoin are highly susceptible to sudden price swings driven by social media hype and market sentiment. Therefore, while the technical indicators suggest significant potential for growth, investors should remain vigilant to market conditions and external factors that may influence DOGE’s performance.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
