[Dogecoin goes to the moon? Cryptocurrency analysts predict a 440% price increase]
In a recent technical analysis by well-known cryptocurrency analyst Big Mike (@Michael_EWpro), Dogecoin (DOGE) shows the potential for significant gains. This analysis combines Elliott Wave Theory, Fibonacci retracement levels and key indicators such as RSI and MACD to present a bullish scenario.
The three-day chart of Dogecoin, which trades on Binance, shows a complex structure that hints at the application of Elliott Wave Theory. This theory predicts price movements based on investor psychology and momentum. The chart shows the end of the correction phase and the beginning of a potentially strong uptrend.
The Elliott Wave pattern points out several key phases. Wave 1 started from below the base level of $0.08 and peaked at $0.2196. Subsequently, a corrective phase of an A-B-C pattern occurs, with wave A falling to $0.1189, wave B rising to $0.17, and wave C falling significantly, completing wave 2.
Big Mike predicts that wave 2 may push the price of Dogecoin as low as $0.1032 before wave 3 begins. The Fibonacci Retracement tool identifies the 0.618 Fibonacci level at $0.2196 as a strong resistance point where future price reversals could occur.
The analysis also identifies potential long-term resistance at the 1, 1.414 and 1.618 Fibonacci extension levels at $0.3208, $0.4839 and $0.5925 respectively. These levels could play a key role if Wave 3 unfolds.
The third wave in the Elliott Wave Theory is typically the most dynamic and broad, which means DOGE has huge bullish potential. Big Mike speculates that Wave 3 could be close to the 1.414 Fibonacci extension level. A potential wave 4 could retrace to $0.3208, while wave 5 could push the price of Dogecoin to $0.6723, which would be equivalent to a 440% increase from current levels.
Currently, the RSI is below 50, indicating a neutral stance on DOGE, with potential for upside as market sentiment turns to buy. The MACD is approaching a bullish crossover, which typically signals an increase in bullish momentum, potentially validating the start of an expected strong uptrend.
