Dogecoin, a popular cryptocurrency known for its Shiba Inu dog meme, is making headlines once again. According to a recent technical analysis by crypto analyst Big Mike, there is a strong possibility of a significant price increase for Dogecoin in the near future. Big Mike utilized various tools such as Elliott Wave theory, Fibonacci retracement levels, and key indicators like the RSI and MACD to support his bullish prediction.
The analysis focused on Dogecoin’s three-day chart on Binance, revealing a complex structure that aligns with the principles of Elliott Wave theory. This theory helps predict price movements based on investor behavior and market momentum. The chart indicated the completion of a corrective phase and the potential beginning of a new bullish trend for Dogecoin.
The Elliott Wave pattern on the chart highlighted several key phases, including Wave 1, which marked the start of bullish momentum and peaked at $0.2196. Following Wave 1, a corrective phase known as an A-B-C pattern emerged, signaling a market correction after an initial price surge. This correction is crucial as it sets the stage for the anticipated bullish Wave 3.
Big Mike’s analysis suggested that Wave 2 could push the Dogecoin price down to $0.1032 before the onset of Wave 3. The Fibonacci retracement tool identified potential support and resistance levels, with the 0.618 Fibonacci level at $0.2196 serving as a significant resistance point. Long-term resistance levels at 1, 1.414, and 1.618 Fibonacci extensions were also identified, indicating possible price targets if the bullish trend continues.
Historically, the third wave in Elliott Wave theory is often the most dynamic and extensive, suggesting significant bullish potential for Dogecoin. Big Mike speculated that Wave 3 could reach near the 1.414 Fibonacci extension level, driving the price up by 440% from current levels.
Key indicators such as the RSI, currently below 50, and the MACD, nearing a bullish crossover, further supported the bullish outlook for Dogecoin. The RSI indicated a neutral stance for DOGE, suggesting potential for upward movement as market sentiment shifts towards buying. The MACD’s impending bullish crossover could validate the projected upward trend.
At the time of writing, Dogecoin was trading at $0.1248. The analysis suggested that Dogecoin needed to reclaim the 200-day EMA to support further price increases.
In conclusion, the technical analysis by Big Mike presents a compelling case for a potential 440% rally in Dogecoin’s price. While all investments carry risks, investors and enthusiasts in the crypto community will be closely watching Dogecoin’s price movements in the coming days to see if Big Mike’s forecast comes to fruition.