Dogecoin (DOGE) has recently experienced significant price fluctuations, reaching a high of $0.48 on November 23. This surge was part of a strong rally, followed by a corrective phase with a 21% decline.
The formation of a rising wedge pattern suggests a corrective pullback, with Fibonacci support levels being closely monitored by analysts. The daily chart shows a 5-wave impulse move, with the recent peak aligning with the 2.272 Fibonacci extension. The price has retraced below the 0.236 Fibonacci retracement level at $0.38, indicating potential further downside.
Key support levels to watch are $0.33, $0.29, and $0.24. The RSI is trending downward, indicating a loss of bullish momentum. Technical indicators and market sentiment suggest caution, with a potential reversal in the price trend. Traders should pay attention to support levels, as a breakdown below $0.29 could invalidate the current bullish setup.
The corrective structure may be developing as a WXY pattern in Wave 4. For a bullish confirmation, DOGE needs to reclaim the $0.38 level and break above $0.45 resistance. Key levels to monitor are $0.38, $0.48 (resistance), $0.33, $0.29, $0.24 (support), and $0.18 (potential significant support). The current technical setup suggests a period of consolidation may be on the horizon, with the potential for a bullish reversal if DOGE reclaims key resistance levels.