In a clip shared on Wednesday, the well-known YouTube channel More Crypto Online provided an assessment of Dogecoin’s price framework, indicating that the meme-based cryptocurrency might be on the verge of either a surge or a fall—if it drops below essential support levels. The analyst’s perspective revolves around Elliott Wave counts, potential consolidation formations, and crucial price points that could shape Dogecoin’s near-term direction.
Dogecoin Balances On The Brink
The analyst observes that Dogecoin has exhibited “only lateral movement over the past few days, actually the last 10 days or so,” following a significant downturn. As per the channel’s presenter, the price has entered a previously recognized support area and has since struggled to push past the key resistance at $0.34:
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“Regrettably, we did not surpass the $0.341 mark in that rally and we haven’t yet breached any signal line, which is unfortunate as it keeps the price trapped in this lateral consolidation phase,” he stated.
Despite the subdued price fluctuations, the analyst is optimistic that Dogecoin may still establish a classic A-B-C corrective sequence, with the potential C-wave finding a floor slightly below the A-wave trough: “If this genuinely forms an A-B-C pattern, the C-wave would typically conclude below the low of the A-wave […] doesn’t have to, but that appears likely.”
He anticipates that the “optimal target” for the C-wave hovers around $0.233 to $0.234, inferred from gauging the length of the initial A-wave. The $0.22 mark is particularly crucial, aligning with the 78.6% Fibonacci retracement. Sustaining this area is seen as essential for maintaining the wider bullish narrative: “As long as the market stays above $0.22, the overall bullish thesis holds firm […] ideally we’re remaining above it.”
A decline beneath this level would significantly undermine the bullish argument, with another lower figure, $0.204, identified as the ultimate point of invalidation. A decisive fall below either mark could indicate further declines: “Any breach below $0.22 will probably lead to invalidation […] the invalidation point itself is a bit lower, however, that stands at $0.204 and we are quite far from that at the moment.”
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From the analyst’s viewpoint, Dogecoin would need to exceed specific “signal lines” to offer stronger proof of a trend shift. He identifies $0.293 as the initial signal of a potential low, whereas breaking beyond $0.342 would be viewed as a more decisive upside breakout trigger.
“Once we finally initiate the third wave […] we need to ascend past the first signal line […] it would be better to break above the upper signal line at $0.342,” the analyst mentions. In this scenario, the structure would affirm a sustained bullish wave, potentially substantiating expectations of a more significant Dogecoin upswing.
The analyst stresses that a considerable portion of the cryptocurrency market remains in lateral territory. He particularly contrasts Dogecoin’s robustness with Solana, which he observes has “declined quite a bit,” while Dogecoin seems to be “holding up fairly well.” Nevertheless, larger market sentiment and macroeconomic elements continue to sway price tendencies across the spectrum.
At the time of writing, DOGE was valued at $0.25.
Featured image created with DALL.E, chart from TradingView.com
