Leading meme coin Dogecoin could face further corrections before reaching new highs, according to market analyst Behdark.
In a recent article on TradingView, Behdark discussed Dogecoin’s latest price movements amid the ongoing market correction. For context, despite the recent crypto decree of President Donald Trumpthe broader crypto market continues to consolidate, and Doge has been a victim of this trend.
Dogecoin faces ABC correction
Behdark explain This Dogecoin entered an ABC correction phase after its price high of $0.41 on December 11, 2024. It identified this point with a red marker on the 8-hour chart. Currently, Doge is in wave B of the correction, who is training as a diametric pattern.
However, he expects this B wave to be an optimistic surge, suggesting that in the short term, Doge could see a brief rebound rally during this wave. The chart data shows that wave B could reach its final stage by the end of January, once it reaches the resistance mark of $0.40.
According to him, this resistance at wave B of the ABC correction would coincide with wave G of a larger wave number that started on December 20, 2024. Nevertheless, after reaching the resistance mark of $0.40, Behdark believes Dogecoin will witness a massive pullback.
Market analyst warns that a bearish wave C is likely to Follow, driving prices to a “yellow zone”. The chart confirms that this wave C is between $0.24 and $0.27, with the possibility of Doge entering this region next month.
Interestingly, this yellow area is important. Behdark believes that significant liquidity is concentrated here. He also suggested that Mastiff could form a higher high of this level, indicating a potential recovery after the correction.
Behdark promised to update his analysis as prices approach the yellow zone. However, its outlook suggests that this correction is necessary before Dogecoin sees a bigger rally.
Broader perspectives
Notably, the latest analysis was an update of a previous report starting December 22, 2024. During this period, the analyst pointed out that Dogecoin is in the middle of A major multi-year bullish phase, marked by a diametric or symmetrical pattern.
The analyst noted that the E wave in this pattern is complete, signaling the start of the F wave, a bearish phase. Based on past corrective waves (B and D), Behdark expects the F wave to be volatile and last between 196 and 347 days.
According to Behdark, wave F is expected to conclude in a horizontal green zone, which is within the $0.15 and $0.20 price range. If Dogecoin price ends below the invalidation level on a weekly candle, the bullish outlook from the green zone will no longer hold.
Meanwhile, in a separate analysisMarket 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 towards the upper boundary of the triangle if the $0.2393 support holds.
Currently, Dogecoin is trading for $0.3491, down 0.49% this morning and changing hands within the wave B from Behdark’s updated analysis. The Bulls need to ensure they defend against any steeper decline below $0.24.
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