Dogecoin Enters Dangerous Zone: Chartist Predicts Strong Decline

Dogecoin slipped to a lower level within its month-long range on Tuesday as independent chart analyst Quantum Ascent provided a detailed analysis of why he believes this meme-coin is undergoing a correction that could end in the zone of fifteen cents. By mid-afternoon in Europe, the token was trading at $0.228, down nearly 12% from its peak on May 11 and suffering modest losses on the day. Dogecoin Enters Danger Zone Reviewing the daily chart, the analyst returned to the bullish move that began on May 8 and made a 50% gain in three sessions: "The last time we checked here was on May 8, when we saw this big green candle, we said, Guys, it looks like we're starting the fifth wave here," he reminded viewers. His initial price increase forecast was a modest Fibonacci expansion level of 2.36, but Dogecoin "has really gone much higher," he added, a sign of strong retail momentum but also an indication of a pattern that now seems to have ended.

Quantum Ascent moved its wave count to show that the thrust was only the fifth subwave inside a larger first wave advance. "We were in the middle of an ABC when we talked... These blue waves will move here," he said, redrawing the labels to mark the ongoing retreat. In the parlance of the Elliott wave, the C leg should be at least equal to the A foot, and the presenter converted that rule into arithmetic: "Eighteen point eight percent from that... That's one of our goals, about 20.5 cents." He argued that deeper penetration is not only possible but statistically common, because "it often goes down to this third or fourth wave." Measuring from the low in early May to the high in mid-May, he drew the retracement levels of 0.500, 0.618, and 0.702 - a range extending from 19.5 cents to 17 cents - and called it "the reasonable zone for resetting the first and second waves." In his view, a shallower stop at 0.382, around 21.8 cents, would be "a fairly shallow correction." An attempt to break higher has stalled in what he calls the "danger zone" between the 0.618 and 0.786 retracement levels: "We tried to break through, but we didn't close... we got past it, ending right at the 702 level, the rejection level, and now it has turned back again." That failure left a nearby activation level: "If we break this low at 21 cents, then we will definitely see 20.5 cents." He further stated that the action resembles the accumulation structure of Wyckoff: "Honestly, it looks like a Wyckoff form and we are building a sign of strength right here before taking off". However, any bullish gains, if any, are likely to be in the next few weeks. He noted that the ongoing correction marks "the second macro wave we are dealing with right now", while emphasizing that the next third wave will be decisive: "The third macro wave — those are the father waves. Those are the big waves. That's where we will really get some energy." The macro context tempers all enthusiasm in the short term. Bitcoin — its own fifth wave peak came earlier and surpassed the previous cycle high — has rolled into an ABC of its own, and Quantum Ascent expects altcoins to "stabilize" along with the leader. "Whether it goes fast in wave C or we just keep winding up, we'll have to wait and see," he concluded, urging followers to keep an eye on volume records and closes instead of the day's wick.

As usual, Elliott wave counting remains more interpretive than predictive and traders should align any positions with their personal risk limits. Dogecoin still holds the eighth largest market capitalization in cryptocurrency, but high volatility means that even small price gaps can translate into double-digit percentage fluctuations.