Often overshadowed by Bitcoin and Ethereum, Dogecoin serves as a compelling case study of the influence of community and meme culture in the financial landscape.
The crypto analyst behind the Pepa page on X believes the DOGE price is on its way to $3, he presented a chart that reveals an Elliot Wave pattern, and he uses the forecast future price movements by examining market cycles. The waves are color-coded with corresponding price targets.
Elliot Wave Theory Application
- First Wave (Orange): This wave indicates DOGE’s price movement from a low to a high, targeting approximately $0.08 to $0.11.
- Second Wave (Blue): Following a correction, this wave suggests a rise with a target range of $0.26 to $0.28.
- Third Wave (Purple): This wave predicts a significant upward movement, targeting between $1.10 and $1.34, representing a substantial increase from previous waves.
- Fourth Wave (Green Arrow): The chart hints at potential future movement with a new high target, implied to exceed previous peaks.
Price Movements and Trends
The historical chart illustrates DOGE’s price progression, marked by notable peaks and troughs. Each wave symbolizes a cycle of growth and correction, typical of the cryptocurrency market:
- The first wave shows an initial rise, followed by a correction—a common occurrence in speculative assets where initial hype leads to a pullback.
- The second wave indicates recovery and further growth, likely due to increased adoption of positive market sentiment.
- The third wave represents the most significant price increase, possibly driven by endorsements, market trends, or greater acceptance of DOGE as a payment method.
- The green arrow suggests optimism for a future surge, potentially targeting new all-time highs.
DOGE Price History and Repetition
The chart overlays Dogecoin’s historical price action with Fibonacci retracement and extension levels, highlighting two distinct periods of accumulation followed by sharp rallies:
- The left section shows a historical breakout and price surge after consolidation within a defined range, aligning with Fibonacci levels.
- The right section indicates that DOGE is currently in a similar position (“We Are Here”) as it was before the previous breakout.
Fibonacci Levels
Fibonacci retracements and extensions mark potential resistance and target levels. The target of $3 aligns with an upper Fibonacci extension (possibly 4.618 or higher). Currently, the DOGE price is around the 0.236–0.382 retracement zone, which has previously acted as a base for growth.
The analysis speculates that the DOGE price could replicate its past behavior and surge toward the $3 target if it breaks out of its current range. Key resistance levels, including those indicated by the 1.618 and 2.618 Fibonacci extensions, must be breached.
The projection to $3 is speculative and relies on repeating historical patterns, which is not guaranteed. Therefore, it’s crucial to consider broader market conditions and external factors when evaluating such targets.
