In
a
recent
technical

analysis
by
popular
crypto
analyst
Big
Mike
(@Michael_EWpro),
the
likelihood
of
a
substantial
rise
in
Dogecoin
(DOGE)
has
been
spotlighted.
Employing
a
blend
of
Elliott
Wave
theory,
Fibonacci
retracement
levels,
and
crucial
indicators
such
as
the
RSI
and
MACD,
the
analysis
presents
a
bullish
scenario
that
could
greatly
influence
Dogecoin’s
market
stance.

Why
Dogecoin
Could
Skyrocket
By
440%

The
three-day
chart
for
Dogecoin,
as
traded
on
Binance,
exhibits
a
complex
structure
that
suggests
the
application
of
Elliott
Wave
theory,
which
is
essential
in
predicting
price
movements
based
on
investor
psychology
and
momentum.
The
chart
indicates
the
end
of
a
corrective
phase
and
the
start
of
a
potential

 

strong
bullish
trend.

The
Elliott
Wave
pattern
on
the
chart
pinpoints
several
crucial
phases.
Wave
1
began
at
a
base
level
below
$0.08,
marking
the
onset
of
bullish
momentum
and
peaked
at
$0.2196.

Related
Reading

Following
this,
the
chart
shows
a
corrective
phase
characterized
by
an
A-B-C
pattern.
This
pattern
is
key
in
Elliott
Wave
theory,
representing
a
market
correction
after
an
initial
price
surge.
Here,
Wave
A
starts
the

correction
with
a
downturn
to
$0.1189,
followed
by
a
slight
upward
retracement
in
Wave
B
to
$0.17,
and
then
a
more
significant
decline
in
Wave
C,
setting
the
stage
for
the
completion
of
Wave
2.

This
corrective
phase
is
vital
as
it
sets
up
the
foundation
for
the
anticipated
bullish
Wave
3.
However,
Big
Mike
predicts
wave
2
could
push
the
Dogecoin
price
down
to
$0.1032
(which
represents
the
peak
of
a
superior
wave
1)
before
the
onset
of
wave
3.

 

The
Fibonacci
retracement
tool
is
employed
to
identify
potential
future
support
or
resistance
levels.
In
this
analysis,
the
0.618
Fibonacci
level
at
$0.2196
is
particularly
significant
as
it
marks
the
peak
of
wave
1
and
a
strong
resistance
point
that
could
influence
future
price
reversals.

Related
Reading

The
analysis
also
identifies
potential
long-term
resistance
levels
at
1,
1.414,
and
1.618
Fibonacci
extensions,
priced
at
$0.3208,
$0.4839,
and
$0.5925
respectively.
These
levels
could
play
crucial
roles
if
the
bullish
Wave
3
unfolds
as
anticipated.

Historically,
the
third
wave
in
Elliott
Wave
theory
is
often
the
most
dynamic
and
extensive,
indicating
substantial
bullish
potential
for
DOGE.
This
wave
aims
to
challenge
and
possibly
surpass

long-term
resistance
levels.
Big
Mike
speculates
that
wave
3
could
reach
near
the
1.414
Fibonacci
extension
level.

A
potential
Wave
4
might
see
a
pullback
to
$0.3208
(1.0
Fibonacci
level),
while
Wave
5
could
drive
the
Dogecoin
price
to
$0.6723,
representing
a
440%
increase
from
current
levels.
Notably,
this
is
also
the
peak
for
the
superior
wave
3.

 

The
Relative
Strength
Index
(RSI),
currently
below
50,
suggests
a
neutral
stance
for
DOGE,
indicating
potential
for
upward
movement
as
market
sentiment
shifts
towards
buying.
The
Moving
Average
Convergence
Divergence
(MACD)
is
nearing
a
bullish
crossover,
often
signaling
increased
bullish
momentum.
This
indicator
is
pivotal
as
it
may
validate
the
onset
of
the
strong
upward
trend
projected.

At
press
time,
DOGE
traded
at
$0.1248.

Featured
image
created
with
DALL·E,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons

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