Elliott Wave Setup Points to Rally

Key Points:

• Dogecoin consolidates in Elliott Wave triangle, nearing breakout stage.
• Analysts eye $0.40–$0.50 as next bullish targets if momentum sustains.
• Breakdown below $0.20 could invalidate bullish setup and shift sentiment.

Dogecoin is priced at $0.2299, up 0.51% in the past hour but down 3.23% daily and 1.50% weekly. Analysts highlight that the price is consolidating within a symmetrical triangle correction pattern, which could precede a breakout.

The daily chart shows Dogecoin moving sideways as buyers and sellers reach equilibrium inside the tightening structure. Analysts consider this correction healthy and aligned with an Elliott Wave formation that typically resolves with an upward continuation.

At the same time, derivatives activity has slowed, with trading volume dropping 63.21% to $3.82 billion. Open interest fell 3.34% to $3.60 billion, while options volume also decreased sharply, though options open interest rose by 41.69%.

Liquidations reflect a bearish skew, with $3.96 million cleared in the past 24 hours, mostly from long positions. However, on Binance and OKX, top trader ratios show a long bias, suggesting optimism remains among large accounts.

Elliott Wave Structure Supports Bullish Outlook

Analyst Trader Tardigrade identified a symmetrical triangle correction pattern composed of five sub-waves labeled A-B-C-D-E. This Elliott Wave structure forms a 3-3-3-3-3 sequence, a classic consolidation phase that often signals continuation.

Wave B appears extended, which is common in such setups, while the E wave is nearing completion. He suggests that once this wave ends, a motive wave upward could follow, pushing Dogecoin into a bullish rally.

Key Price Levels and Breakout Targets

Another analysis shows Dogecoin has broken out of channel resistance and is retesting support near $0.22–$0.23. This retest is considered an important confirmation before a potential rally resumes.

Targets range between $0.40 and $0.50, representing a possible 30% or more upside if momentum continues. Longer-term projections suggest levels of $0.75 and even $1 could be tested during stronger cycles.

However, a breakdown below $0.20 would invalidate the bullish setup and shift momentum back to sellers. Fibonacci retracement levels and volume trends reinforce the importance of the current consolidation zone for the next move.

Market Sentiment and Trading Behavior

The long/short ratio across exchanges stands at 0.95, showing a slight dominance of shorts overall. Yet, Binance and OKX account ratios are above 3.0, signaling stronger confidence from traders on those platforms.

Binance top trader ratios are higher, with 4.56 for accounts and 4.14 for positions, reflecting an even stronger long bias. Despite recent liquidations and falling volume, this trader behavior indicates confidence in Dogecoin’s medium-term outlook.