“If a coin has a long history of data, it is perfectly suited for Elliott Wave theory, as it helps to reduce the noise influence over shorter time frames,” noted the analyst.
Highlighting the rapid rise of Dogecoin from approximately $0.001 to its previous peak of nearly $0.80, the analyst emphasized that what once seemed like an “unattainable dream” could now become a reality.
“For me, this is a transition from dream to reality. Such an extraordinary leap aligns with the concept of an extended Wave 3 within the framework of Elliott Wave theory,” the expert remarked, adding that markets typically move in recurring cycles consisting of five impulse waves and three corrective waves, partially driven by the collective psychology of investors.
According to the analyst, Elliott Wave theory only provides probabilities, not guarantees, but the long and deep price history of Dogecoin adds more credibility to these calculations. Analyzing the macro chart, he explained that DOGE has likely completed its fourth wave, describing it as “a very rare triangle.” He suggested that a breakout from this formation could initiate the fifth wave, potentially surpassing the previous peak and reaching levels above $4.
Pointing out a potential five-wave structure from historical lows to the peak around $0.80, the analyst stated that the market's cyclicality indicates the possibility of another significant impulse.
“We may be working on a larger extended third wave upward for the supercycle,” said crypto analyst XForceGlobal, emphasizing that the long-term trend for Dogecoin remains unchanged despite periodic downturns.