Dogecoin, the popular meme coin, finds itself at a pivotal juncture, currently navigating an extended correction phase since its 2021 peak. However, a recent technical analysis suggests the cryptocurrency is poised for a potential "macro Wave 5" expansion, hinting at an astounding rally of over 3,000% if key support levels hold.
Dogecoin Enters Critical Accumulation Zone
According to a detailed technical roadmap shared by crypto analyst Crypto Patel, Dogecoin's price action on the 2-week candlestick chart reveals a familiar pattern reminiscent of its previous bull run. Following its 2021 all-time high, DOGE completed its Wave 1 and Wave 2 corrections, leading into a robust Wave 3 that peaked near $0.48 in December 2024. Currently, Dogecoin is entrenched in a Wave 4 corrective phase, characterized by a descending channel that has consistently guided its price lower for over a year. Crucially, this correction has unfolded without invalidating the overarching bullish structure. This period of price consolidation, specifically within a high-timeframe demand zone between $0.115 and $0.09, is identified as a critical accumulation phase. This zone previously served as the launching pad for Dogecoin's parabolic surge between 2020 and 2021, demonstrating its historical significance. Persistent buying pressure within this range has prevented further declines, reinforcing its role as a strong support level, even through the 2022 bear market lows.
Anticipating a Multi-Year Wave 5 Expansion
Should Dogecoin successfully break out of its descending channel and maintain the integrity of this accumulation zone, the technical projection points towards a powerful "Wave 5" impulse move. Initial targets for this expansion are set around $0.28, with subsequent ambitious projections reaching $1, $2, and ultimately, a remarkable $4. From its current trading price of approximately $0.1247, achieving the $4 target would signify a monumental gain of over 3,100%. While this projection is significant, it is important to note that it's comparatively smaller than Dogecoin's previous cycle's expansion, which saw a staggering 26,800% increase. The analysis also defines a clear invalidation point: a weekly close below $0.06 would negate the bullish Wave 5 thesis. Until then, Dogecoin remains in a compression phase, where downside risks are well-defined, but the potential for a substantial rally to new price highs remains a compelling possibility.
