In a video on Wednesday, the popular YouTube channel More Crypto Online offered an analysis of Dogecoin’s price structure, suggesting that the meme-inspired cryptocurrency could be on the cusp of a breakout or breakdown—provided it falls below critical support levels. The analyst’s outlook centers around Elliott Wave counts, potential consolidation patterns, and pivotal price thresholds that could define Dogecoin’s short-term trajectory.
Dogecoin Teeters On The Edge
The analyst notes that Dogecoin has shown “only sideways action over the last few days, actually last 10 days or so,” following a significant selloff. According to the channel’s host, the price dipped into a previously identified support zone and has since failed to rally above the key resistance at $0.34:
“Unfortunately, we did not break above the $0.341 level in that recovery and we haven’t yet broken above any signal line, which is a shame because it keeps the price caught in this sideways consolidation mode,” he said.
Despite the muted price action, the analyst believes Dogecoin may still form a classic A-B-C corrective pattern, with the potential C-wave finding a bottom slightly below the A-wave low: “If this really is an A-B-C structure, the C-wave would normally end below the low of the A-wave […] doesn’t have to, but that seems to be likely.”
He estimates that the “ideal target” for the C-wave sits around $0.233 to $0.234, derived from measuring the length of the initial A-wave. Of particular importance is the $0.22 level, which aligns with the 78.6% Fibonacci retracement. Maintaining this zone is viewed as critical to preserving the broader bullish scenario: “Only as long as the market holds above $0.22, the overall let’s say bullish thesis remains intact […] ideally we’re holding above it.”
Any drop below this threshold would seriously dent the bullish case, and another lower figure, $0.204, is cited as the ultimate invalidation point. A decisive break under either level could signal further downside: “Any break below $0.22 will likely lead to invalidation […] the invalidation point itself is a little lower, however, that’s at $0.204 and we are far away from that at the moment.”
From the analyst’s perspective, Dogecoin would need to exceed certain “signal lines” to provide stronger evidence of a trend reversal. He highlights $0.293 as the first signal of a potential low, while a move beyond $0.342 would be considered a more definitive upside breakout trigger.
“Once we finally start the third wave […] we need to get above the first signal line […] better will be a break above the upper signal line at $0.342,” the analyst states. In that scenario, the structure would confirm a sustained bullish wave, potentially validating expectations of a more pronounced Dogecoin rally.
The analyst emphasizes that much of the crypto market remains in sideways territory. He specifically compares Dogecoin’s resilience to Solana, which he notes has “dropped quite a bit,” while Dogecoin appears to be “holding quite well.” Nevertheless, broader market sentiment and macroeconomic factors continue to influence price performance across the board.
At press time, DOGE traded at $0.25.
Featured image created with DALL.E, chart from TradingView.com
Jake Simmons
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.
For Jake, Bitcoin represents more than just an investment; it’s a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
You can engage with his latest takes on Twitter: @realJakeSimmons.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
