Dogecoin Price Correction: Breakout Rally Beyond $0.40 Imminent?

Key Insights:

• Dogecoin has been in an ABC correction phase with a projected Wave C drop to the $0.24-$0.27 zone.
• The analyst predicted DOGE would rebound from $0.24 support before starting a significant rally.
• DOGE trades at $0.3492, forming Wave B, with $0.40 as key resistance before correction.

According to a recent analysis, the meme currency, Dogecoin (DOGE), was in the market correction phase. At press time, the Dogecoin price traded at $0.3534, a 3% decline from yesterday’s morning trading session.

This price shift can be attributed to the overall retracement in the cryptocurrency market. The DOGE price peaked at $0.41 on December 11th, 2024.

The crypto market has demonstrated price stability. This is especially true since President Donald Trump issued an executive order to establish regulatory limitations.

ABC Correction and Current Price Resistance

TradingView analyst Behdark suggested that the Dogecoin price remains within its current ABC correction pattern. DOGE price peaked in December before entering wave B of this corrective phase while demonstrating brief upswing signals.

Analyst Behdark believes that rising bullish pressure will propel the DOGE price toward the $0.40 resistance point by the end of January. The ABC correction showed wave B developing a distinct pattern in the analysis by the expert.

Data revealed short-term price increases will likely trigger a wave C price correction. Wave C can potentially take the Dogecoin price into the “yellow zone.” There, the concentrated liquidity dominated between $0.24 and $0.27.

Anticipated Pullback and Recovery Potential

After wave B resistance reaches $0.40, Behdark expects an upcoming wave C bearish movement. Rising Waves could push the Dogecoin price into the $0.24 to $0.27 range.

The analyst highlighted this price zone as an essential spot for DOGE to develop fresh price peaks during probable upward swings. Within the vital “yellow zone,” liquidity accumulates to drive potential buying momentum.

Other analysts, such as Moein Haddadian, found an upward trend channel on Dogecoin’s daily graph. That indicated potential DOGE price growth in the future.

The $0.2393 support level maintained sufficient strength for Haddadian to anticipate DOGE testing the ascending channel’s upper limits. The behavior of the Dogecoin price within Behdark’s designated yellow area matches the assessment.

Dogecoin Price Broader Wave Analysis and Future Outlook

Behdark analyzed the Dogecoin price in December 2024. It had been in an uptrend with symmetrical wave patterns for several years. This phase is likely to be bearish, with a trend lasting between 196 and 347 days.

The further evolution of Wave F will develop in the long-term trend green zone between $0.15 and $0.20. The wave analysis also emphasized that DOGE requires continuous weekly price increases above the key green zone invalidation level.

Failing to keep above the invalidation level endangers the optimistic forecast for this cycle phase. More so, a recent filing for the Bitwise Dogecoin ETF validates the bullish prediction.

The expected regulatory approval will open the market to institutional investments. The proponents believe this will spark DOGE price growth.

According to analyst Ali Martinez, the upcoming Dogecoin price trajectory points toward $15 with an upward channel. At the same time, sustained accumulation drives this positive outlook.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.