In a recent technical analysis, crypto analyst Big Mike (@Michael_EWpro) has predicted a potential 440% price increase for Dogecoin (DOGE). Using various indicators and theories such as Elliott Wave theory, Fibonacci retracement levels, and key indicators like RSI and MACD, the analysis presents a bullish scenario for DOGE’s market stance.
The three-day chart for DOGE on Binance shows a complex structure that aligns with Elliott Wave theory, indicating the end of a corrective phase and the start of a potentially strong bullish trend. The chart highlights crucial phases, with Wave 1 starting below $0.08 and peaking at $0.2196.
Following this, a corrective phase is observed, characterized by an A-B-C pattern. Wave A brings the correction down to $0.1189, followed by a slight upward retracement in Wave B to $0.17, and then a more significant decline in Wave C, setting the stage for the completion of Wave 2.
This corrective phase is important as it serves as the foundation for the anticipated bullish Wave 3. However, Big Mike predicts that wave 2 could push DOGE’s price down to $0.1032 before the onset of wave 3.
The analysis employs the Fibonacci retracement tool to identify potential support or resistance levels. The 0.618 Fibonacci level at $0.2196 is particularly significant as it marks the peak of wave 1 and a strong resistance point that could influence future price reversals.
Additionally, potential long-term resistance levels at 1, 1.414, and 1.618 Fibonacci extensions are identified, priced at $0.3208, $0.4839, and $0.5925, respectively. These levels could play crucial roles if the anticipated bullish Wave 3 unfolds.
The third wave in Elliott Wave theory is historically the most dynamic and extensive, indicating considerable bullish potential for DOGE. Big Mike speculates that wave 3 could reach near the 1.414 Fibonacci extension level.
A potential Wave 4 might see a pullback to $0.3208 (1.0 Fibonacci level), while Wave 5 could drive DOGE’s price to $0.6723, representing a 440% increase from current levels. Interestingly, this level is also the peak for the superior wave 3.
The Relative Strength Index (RSI) currently sits below 50, suggesting a neutral stance for DOGE and potential for upward movement as market sentiment shifts towards buying. The Moving Average Convergence Divergence (MACD) is nearing a bullish crossover, often indicating increased bullish momentum. This indicator is crucial as it may validate the projected strong upward trend.
As of now, DOGE is trading at $0.1248.