Dogecoin, the leading meme coin, could face further corrections before reaching new heights, according to market analyst Behdark.
In a recent post on TradingView, Behdark discussed Dogecoin’s latest price movements amid the ongoing market correction. For context, despite the recent crypto executive order from President Donald Trump, the broader crypto market continues to consolidate, and DOGE has been a victim of this trend.
Dogecoin Faces ABC Correction
Behdark explained that Dogecoin has entered an ABC correction phase following its $0.41 top price on Dec. 11, 2024. He identified this point with a red marker on the 8-hour chart. Currently, DOGE is in wave B of the correction, which is forming as a diametric pattern.
However, he expects this Wave B to be a bullish push, suggesting that in the short term, DOGE could witness a brief rebound rally during this wave. Data from the chart shows that Wave B could reach its final stage by the end of January, once it reaches the $0.40 resistance mark.
According to him, this Wave B resistance of the ABC correction would coincide with the wave g of a broader Wave count that began on Dec. 20, 2024. Nonetheless, after reaching the $0.40 resistance mark, Behdark believes Dogecoin will witness a massive pullback.
The market analyst warns that a bearish wave C is likely to follow, driving prices down to a “yellow zone.” The chart confirms that this wave C lies between $0.24 and $0.27, with the possibility of DOGE entering this region next month.
Interestingly, this yellow zone is important. Behdark believes significant liquidity is concentrated here. He also suggested that Dogecoin could form a higher high from this level, indicating potential recovery after the correction.
Behdark promised to update his analysis as prices approach the yellow zone. However, his outlook suggests this correction is necessary before Dogecoin experiences a more significant rally.
Broader Outlook
Notably, the latest analysis was an update to a previous report from Dec. 22, 2024. During this period, the analyst highlighted that Dogecoin is in the midst of a large, multi-year bullish phase, marked by a diametric or symmetrical pattern.
The analyst noted that wave E of this pattern is complete, signaling the start of wave F, a bearish phase. Based on past corrective waves (B and D), Behdark expects wave F to be volatile and last between 196 and 347 days.
According to Behdark, wave F should conclude within a horizontal green zone, which lies within the $0.15 and $0.20 price range. If Dogecoin’s price closes below the invalidation level on a weekly candle, the bullish outlook for the green zone will no longer hold.
Meanwhile, in a separate analysis, market watcher Moein Haddadian pointed out that Dogecoin is currently forming an ascending triangle as it looks to recover from a 45% price correction. He expects DOGE to push toward the upper boundary of the triangle if the $0.2393 support holds.
Currently, Dogecoin trades for $0.3491, down 0.49% this morning and changing hands within the Wave B from Behdark’s updated analysis. The bulls must ensure they defend against any steeper drop below $0.24.
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