Defx Insights

Tag: Elliott Wave Trading

  • Dogecoin Price Target $1: Elliott Wave Pattern Signals Major Rally

    A prominent crypto analyst has identified a powerful Elliott Wave setup that could propel Dogecoin (DOGE) toward the coveted $1 mark, representing a potential 444% surge from current levels. The analysis comes amid growing technical evidence suggesting DOGE may be preparing for its next major impulse move.

    Technical Analysis Points to Explosive DOGE Setup

    Crypto analyst Maelius has published detailed technical analysis showing DOGE/USDT is displaying a textbook Elliott Wave pattern that often precedes significant price appreciation. The meme coin is currently trading at $0.1843 after retracing from March highs, but key technical indicators suggest this pullback may be setting up a major rally.

    The analysis identifies several critical technical factors:

    • Price has pulled back to a key demand zone between $0.12-$0.17
    • 50-week EMA at $0.205 providing dynamic resistance
    • 200-week EMA at $0.1415 acting as crucial support
    • Rising trendline from late-2023 reinforcing $0.15 support level

    Elliott Wave Projects Potential 444% Rally

    The Elliott Wave count suggests DOGE is forming a powerful “1-2, 1-2” nesting pattern – a setup that typically precedes explosive price moves. This specific formation indicates the next move could be a wave 3 of wave 3, considered the most potent phase of an Elliott impulse sequence.

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    Key Price Levels to Watch

    For traders looking to capitalize on this potential move, several critical price levels demand attention:

    • Immediate resistance: $0.205 (EMA 50)
    • Key breakout level: $0.26 (May high)
    • Major resistance cluster: Mid-$0.40s
    • Critical support: $0.14 (trend line + EMA 200)

    The WaveTrend Oscillator (WTO) is showing encouraging signs, with both fast and slow curves recovering from oversold territory and momentum shifting positive. This technical development adds weight to the bullish case.

    Risks and Considerations

    While the technical setup appears promising, traders should note several risk factors:

    • A break below $0.14 would invalidate the immediate bullish case
    • The analyst emphasizes flexibility over rigid price targets
    • Broader crypto market conditions could impact DOGE’s trajectory

    Frequently Asked Questions

    Q: What is the current Dogecoin price?
    A: DOGE is currently trading at $0.18.

    Q: What technical indicators support the bullish case?
    A: The Elliott Wave pattern, WaveTrend Oscillator recovery, and price action above key moving averages all suggest bullish momentum.

    Q: What could invalidate this prediction?
    A: A decisive break below $0.14 would violate the ascending trendline and postpone the Elliott Wave count.

    As with any technical analysis, traders should employ proper risk management and consider multiple scenarios when planning their positions.

  • Cardano Price Alert: Elliott Wave Points to 50% ADA Crash Before $1.6 Rally

    Cardano Price Alert: Elliott Wave Points to 50% ADA Crash Before $1.6 Rally

    Cardano (ADA) traders are facing a critical juncture as Elliott Wave analysis suggests an imminent 50% price correction before a potential rally to new highs. Despite maintaining steady upward momentum in recent weeks, technical indicators are now flashing warning signs for ADA holders.

    Elliott Wave Analysis Predicts Major ADA Correction

    According to detailed Elliott Wave analysis on TradingView, Cardano is completing a B-wave correction pattern that formed between April and June 2025. While the recent price action may appear bullish on shorter timeframes, the completion of this corrective phase could trigger a sharp decline to the $0.42 support level.

    This bearish scenario aligns with broader market dynamics affecting major cryptocurrencies, though Bitcoin’s current strength near $109K could potentially moderate ADA’s correction.

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    Key Technical Levels to Watch

    The projected decline targets the 0.786 Fibonacci retracement level at $0.42, representing a 50% drop from current prices. However, this correction could set up a powerful Wave 5 impulse move targeting $1.60. Critical support levels include:

    • Primary support: $0.42 (0.786 Fibonacci level)
    • Secondary support: $0.40 (Wave 1 top – invalidation level)
    • Current resistance: $0.84 (recent rejection point)

    Strategic Opportunities Amid Bearish Forecast

    While the short-term outlook appears bearish, this correction could present a strategic accumulation opportunity. The projected Wave 5 rally to $1.60 would represent over 280% returns from the forecasted bottom at $0.42.

    Market Impact and Risk Factors

    Several factors could influence this technical forecast:

    • Bitcoin’s price action near key resistance levels
    • Overall market sentiment and volatility
    • Institutional investment flows
    • Cardano network development progress

    FAQ Section

    When could the ADA price correction begin?

    According to the Elliott Wave analysis, the correction could initiate once the current B-wave structure completes, likely within the next few weeks.

    What invalidates this bearish scenario?

    A sustained break above $0.84 or a drop below $0.40 would invalidate the current Elliott Wave count.

    Is this a good time to accumulate ADA?

    Strategic investors might consider preparing for potential accumulation near the $0.42-$0.40 support zone, though proper risk management is essential.

    At press time, ADA trades at $0.7706, showing minimal change (-0.2%) over the past 24 hours as traders await clearer directional signals.