Dogecoin price suggests recovery rally may have ended as bears decimate weak hands at $0.12

Dogecoin price has retested and failed to break past a previous fourth wave of one degree.
The 8-hour chart has established an impulsive wave down.
A bullish spike into $0.125 will invalidate this thesis.

Despite the Dogecoin price’s long-term uptrend, the 8-hr chart provides evidence of a potential impulsive third wave down in play. DOGE enthusiasts should consider sitting on the sidelines until more bullish price action is displayed.

Also read: Gold Price Forecast: XAUUSD nearing the critical $1,900 level

Dogecoin price to drop to $0.07 suggests Elliott Wave

Elliott wave theory suggests that corrections within impulsive trends will retrace into the fourth wave of one previous degree. Dogecoin price is sneakily showing evidence that the counter-trend correction has already occurred on the 8-hr chart and that a more significant sell-off is almost underway.

A five wave impulse down has already occurred this month from the March 1 high at $0.13 into the March 13 low at $0.109. It is worth noting that bulls did attempt to push Dogecoin price higher from the March 13 low, but the rally was short-lived and met considerable resistance at $0.12, exactly where the previous fourth wave was established days earlier.

Dogecoin price chart

DOGE/USD 8-Hour Chart

Dogecoin price action now suggests that bears have a firm grip on the current trend of the infamous meme coin. Traders should be very cautious, as Dogecoin price currently fluctuates only 2% above the first completed impulse wave down. A break below $0.109 could be followed by extreme bearish mayhem in the form of a third wave down.

The only way to invalidate Dogecoin price’s bearish thesis is if the bulls can produce a higher high above the previous fourth-degree resistance at $0.1215. If so, then DOGE price is likely to reach targets of $0.13 and $0.145, up to 35% away from the current price.

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