A crypto analyst looked at the Dogecoin price chart to assess if the meme coin has bottomed out after falling significantly this year.
A crypto analyst from the More Crypto Online YouTube channel looked closely at the price chart for Dogecoin (DOGE) in a recent video posted on Dec. 11, assessing whether the meme-inspired cryptocurrency may have bottomed out after its long decline this year.
Doge has broken out of this price channel to the upside. Has it bottomed? Unclear. We can’t say for sure, but we’ve been tracking here a diagonal pattern to the upside.
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While stating that he could not definitively declare the end of the crypto bear market, he acknowledged there are signs of a potential bottom forming.
The analyst discussed two possible Elliott Wave interpretations for Dogecoin’s recent price moves. In one scenario, the current rise could be a leading diagonal pattern, indicating there may still be another pullback ahead in a fourth wave. The alternative sees the rally as the third wave of an impulsive sequence.
If modeling the advance as an impulsive third wave, the analyst notes more upside could be in store, perhaps exceeding the psychologically key $0.12 level, which aligns with the 1.618 Fibonacci extension of waves one and two. In this case, he would watch for a break of the $0.086 level to signal that a top is likely in place.
While remaining cautiously optimistic given the ambiguous wave count, the analyst stressed, “We only have three waves up.” He conceded a bearish head and shoulders topping pattern also remains in play if the cryptocurrency fails to push higher. For now, he is tracking both bullish and bearish scenario potentials as more price data unfolds.