The price of Dogecoin has returned to the level that should be watched closely with long-term price action, as multi-year chart structures begin to resemble conditions that preceded their last historical rally.
Still spending years correcting from its 2021 high, Dogecoin is now trading within a well-defined collection area in the highest period of time, according to a new technical analysis shared by Crypto Patel on X. The analyst noted that this phase could set the stage for a macro Wave 5 expansion that takes the meme coin to new highs, as long as key support levels continue to hold.
Dogecoin Sits in All-Time High Accumulation Zone
The road to technology is open the 2-week candle time chart breaks the price action of Dogecoin after the 2021 price high of the Elliott Wave phases. Wave 1 and Wave 2 were marked as completed, followed by a strong Wave 3 that reached $0.48 in December 2024. Since then, DOGE has entered a wave 4 correction phase, forming a descending channel that has guided the lower price for more than a year without invalidating the broader bullish framework.
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This descending channel is important for this technical analysis. A similar corrective behavior appeared just before Dogecoin’s last big rally in 2021, when the price rallied for a long time before resolutely breaking higher.
Dogecoin is now insider trading a high-term search area that served as the basis for its 2020 to 2021 parabolic rally. This area is just above the long-term horizontal support level that has held for a long time, including the depth of the 2022 bear market.
According to the analyst, this region between $0.115 and $0.09 is a clear area of continued accumulation, where buying pressure has further prevented a deeper decline.
Wave 5 Guides a Multi-Year Expansion Path
If the accumulation zone continues to hold and the price breaks out of the descending channel, the next prediction is a play for the Wave 5 impulse move. The Crypto Patel map targets for this section start at around $0.28, followed by higher extensions at $1, $2, and finally $4.
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At the time of writing, Dogecoin can be sold for 0.1247 US dollar. So, from current levels, that final target of $4 would represent a move of over 3,100%. However, this pales in comparison to the magnitude of Dogecoin’s previous massive expansion of 26,800% in the previous cycle.
On the other hand, the analysis noted that invalidity is also well defined. A weekly close below $0.06 would break the higher time frame and invalidate the Wave 5 thesis. Until then, technical analysis suggests that Dogecoin is in a compression phase where low risk is increasingly defined, but an upward increase to new highs is possible if Dogecoin starts the last momentum of the cycle.
Featured image from Getty Images, chart from Tradingview.com
