The Dogecoin weekly chart construction could also be organising for a basic Elliott Wave “third wave” advance, in keeping with dealer and market commentator Cantonese Cat (@cantonmeow), who argued that DOGE has reclaimed a important Fibonacci degree and may very well be transitioning from corrective worth motion into a brand new impulsive leg.

Dogecoin Set For Takeoff As Wave 3 Kicks In

Sharing a weekly chart, the analyst wrote: “Initially I believed DOGE wave 2 retraced to 0.5 of wave 1, which is legitimate, but it surely determined to get to 0.382 which can be doable for a wave 2 retracement. Now it’s reclaiming 0.618 and wave 3 may very well be beginning… and wave 3 is essentially the most bullish and strongest of all of them.”

The chart posted by Cantonese Cat applies a Fibonacci grid to Dogecoin’s 2022–December 2024 advance (“Wave 1” on the graphic), with the 0.618 retracement anchored round ~$0.20088 on the weekly timeframe and the mid-range ranges marked at 0.5 (~$0.15350) and 0.382 (~$0.11729).

On the left axis, historic weekly candles present DOGE’s earlier cycle blow-off adopted by a prolonged basing interval close to the ~$0.05–$0.10 zone (the 0.0 line sits at ~$0.04909), from which the advance started in mid-2022.

Associated Studying

Elliott Wave evaluation proposes that markets pattern in a five-wave impulse the place the third wave is usually the strongest by each breadth and momentum. Inside that framework, a “Wave 2” pullback incessantly terminates within the 0.382–0.618 retracement band of Wave 1, whereas a decisive reclaim of the 0.618 degree on greater timeframes is commonly handled by technicians as a structural pivot again in favor of the prevailing uptrend.

The chart Cantonese Cat shared labels the current decline as “Wave 2,” with wicks probing towards the 0.382 band and subsequent weekly closes gravitating again towards the 0.618 degree. The present weekly candle plotted on the picture sits virtually precisely on that 0.618 line, indicating the market is testing whether or not patrons can convert it into help.

Associated Studying

The analyst’s emphasis on the 0.618 reclaim is in line with what number of systematic merchants translate Fibonacci confluence into danger frameworks: closes and acceptance above the golden-ratio band elevate the chance that the prior impulse has resumed, whereas sustained rejection there usually retains a market locked in a spread.

DOGE Value Targets

The chart additionally visualizes potential topside waypoints ought to momentum broaden. The Fibonacci projections drawn past the “Wave 1” peak show the 1.0 band at roughly $0.48 and classical extensions at 1.272 (~$0.89), 1.414 (~$1.23), and 1.618 (~$1.96). Elliott practitioners incessantly monitor these zones for acceleration targets or distribution danger if a 3rd wave unfolds.

For now, the operative declare is simple and testable on chart: “Now it’s reclaiming 0.618 and wave 3 may very well be beginning,” with the reminder that “wave 3 is essentially the most bullish and strongest of all of them.” Whether or not worth can maintain above the ~$0.20088 pivot into weekly shut after which display impulsive breadth—rising vary, increasing quantity, and management versus friends—will decide if this setup matures into the type of third-wave advance Elliott theorists anticipate or fades again into consolidation.

At press time, DOGE traded at $0.20.

Featured picture created with DALL.E, chart from TradingView.com