DOGE Completes Corrective W-X-Y-X-Z Structure, Transitions to New Impulsive Bullish Wave

The price consolidates after a sharp rally, retracing to key Fibonacci and structural support levels.

The price of Dogecoin (CRYPTO: DOGE) has been consolidating after a sharp rally, testing key Fibonacci and structural support levels, while Elliott Wave counts suggest the completion of wave (iv) and the potential beginning of wave (v).

What Happened: The 4-hour chart shows the completion of a long-term W-X-Y-X-Z corrective decline, bottoming at $0.131 on April 7. This low marked the start of a sharp upward move, breaking out from the descending wedge and invalidating the prior bearish market structure.

A significant impulse followed, with DOGE topping out at nearly $0.26, at the 0.382 Fibonacci level from the March 2022 high to the January 2023 low. Afterwards, it started to consolidate.

This retracement aligns with the 0.236 Fibonacci level at $0.214, which is now being tested as support.

The Relative Strength Index (RSI) remains in neutral territory around 50, suggesting that price action is cooling off from overbought levels without entering bearish momentum.

DOGE is also testing a previous resistance-turned-support horizontal zone near $0.215-$0.220, providing a confluence of support alongside Fibonacci levels.

If this zone holds, it could confirm the start of wave (v) toward new local highs. Failure to maintain this support would expose DOGE to a deeper retracement, potentially retracing to $0.18 or lower.

The structure and momentum indicators point toward a healthy correction within a broader uptrend, but higher lows and a consolidation breakout are needed to confirm this.

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What Next For Dogecoin: On the 1-hour chart, DOGE has been forming a descending triangle that appears to be completing its final leg wave (e) of a (a)-(b)-(c)-(d)-(e) correction count. This pattern typically precedes a breakout and trend continuation.

The current support zone near $0.215 aligns with the horizontal structure and the Fibonacci 0.236 level, providing a strong foundation for a bullish reversal.

Wave (iv) appears nearly complete, having retraced from the $0.265 high to the $0.215 zone. Once the (e) leg finishes, a new bullish wave (V) could target key Fibonacci extensions.

Based on wave (iii) height of 1.618 extension targets $0.258, the next move could bring DOGE to 2.0 extension at $0.280 which would be around 31% increase from the current levels.

The RSI on the 1-hour timeframe is nearly oversold, further supporting the idea of an upcoming bounce.

If DOGE manages to confirm the bounce by reclaiming $0.223 and making an upward breakout, it would signal the continuation of bullish momentum, likely pushing the coin into the $0.25-$0.28 zone.

The bullish outlook would be invalidated if DOGE breaks down below $0.214 with volume, possibly revisiting the $0.20-$0.18 range.

Until then, bulls appear to be positioning for a new upward leg.

Key Levels to Watch: