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- DOGE faces short-term bearish signals from wedge breakdown risks.
- Long-term Elliott Wave counts remain bullish toward $1.
- Holding $0.20–$0.22 support will decide the next big move.
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Dogecoin’s (DOGE) September breakout above long-term resistance quickly unraveled, with the memecoin falling 20% in just days. Now, the token sits inside a precarious ascending wedge, raising fears that more downside could follow. Yet, technical patterns hint that this slump may only be a temporary setback before another bullish push.
Short-Term Bearish Signals
On the daily chart, Dogecoin is trading inside an ascending wedge pattern, often seen as a bearish setup. The coin has also completed a five-wave rally within this wedge, typically a sign of exhaustion. Adding to the pressure, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) have both turned negative. If the wedge breaks down, DOGE could find support around the $0.20–$0.22 zone.
Long-Term Trend Remains Intact
Despite short-term weakness, Dogecoin’s longer-term structure looks more encouraging. Since October 2023, the token has respected an ascending support line, bouncing higher on multiple occasions. Elliott Wave counts suggest that the recent decline may represent a corrective “wave two” before another five-wave rally takes shape. If this outlook holds, DOGE could eventually target a new cycle high—potentially above $1.
Also Read: First U.S. Dogecoin and XRP ETFs Launch, Marking Altcoin Milestone
September Outlook: Correction or Collapse?
For now, traders are left weighing two narratives: a bearish wedge breakdown that drags Dogecoin lower in the near term, or a healthy correction setting the stage for a bigger rally. Holding Fibonacci support around $0.20 will be key. If that level holds, DOGE may yet regain momentum and keep its long-term bullish case alive.
Dogecoin’s current weakness doesn’t necessarily invalidate its larger uptrend. While short-term charts flash red, the broader picture suggests the rally may just be pausing. If history repeats, this correction could be the reset that propels Dogecoin toward its long-awaited push to $1.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
