Dogecoin Poised for Rally as Bullish Pattern Emerges, 17% Gain Seen

An independent chartist, Maelius, has identified a potential bullish pattern for Dogecoin, suggesting that the cryptocurrency could be on the verge of a significant rally. Maelius' analysis, shared on X, indicates that Dogecoin is tracing a "spring-loaded" Elliott wave pattern, which often precedes a substantial price increase. The analyst cautioned market makers not to introduce excessive volatility too soon, allowing the structure to mature before unleashing significant price movements.

According to Maelius' wave count, the second minor wave-two concluded last week when the price reached $0.142 and immediately rebounded. This inflection point coincided with the 200-week exponential moving average and a rising support trend-line, which has been tracking Dogecoin since late-2023. This area is considered a strong defensive zone for long-term investors, providing a clear reference point for risk management.

If the wave pattern holds, the subsequent third wave could push Dogecoin into the $1.10–$1.30 range, followed by a fourth-wave correction around $0.60. The cycle would then conclude with a fifth wave above $1.60. While Maelius did not provide specific time targets, the price levels are clearly marked on the chart, offering a straightforward roadmap for potential price movements.

The analysis also highlights underlying demand, with a broad green rectangle labeled "DEMAND" spanning roughly $0.12–$0.17. Last week's price action penetrated this zone before reversing, reinforcing its importance. The WaveTrend Oscillator (WTO) shows that momentum is cooling but could be reversing, as it is touching the oversold floor, similar to previous instances before significant price increases.

Skeptics point out that a nested 1-2 count can fail if the price undercuts the second wave-two, and that liquidity-driven memecoins are prone to sudden price swings. Maelius acknowledged this risk, noting that a choppy summer would not significantly alter the long-term outlook. For now, as long as Dogecoin holds above the converging 200-week EMA–trend-line nexus and the upper rim of the demand zone, the wave thesis remains intact, and the next directional move will be determined by market forces rather than meme-driven sentiment.

At the time of reporting, Dogecoin was trading at $0.1634, marking a 17% increase since the bottom on Sunday. The analysis suggests that the cryptocurrency's price could be poised for further gains, but caution is advised due to the inherent volatility of memecoins.