Dogecoin’s recent price swings have left traders on edge. After peaking near $0.2875, it has dropped sharply into a deep correction.
Now, many are watching the $0.1820 level closely. This zone may decide whether DOGE begins its next move up or dips lower. Analysts say it is a critical turning point for the market.
Veteran trader Matthew Dixon outlined a clear five-wave impulse that topped out at $0.2875. Each leg unfolded with textbook precision, ending with a pullback to $0.1820. He noted that this drop forms an ABC corrective pattern, a common setup in crypto price cycles.
#DOGE likely saw a completed 5-wave impulse up to the $0.2875 top
Wave 1: From ~$0.14 to ~$0.195
Wave 2: Pullback to ~$0.18 (shallow and quick)
Wave 3: Major leg from ~$0.18 to ~$0.26
Wave 4: Correction to ~$0.22 (approx. 0.382–0.5 retracement)
Wave 5: Final push to $0.2875… pic.twitter.com/z1CF9AC4Iz— Matthew Dixon – Veteran Financial Trader (@mdtrade) August 4, 2025
Dixon added that the C-wave has likely completed. He pointed to a 5-wave internal move within it, which often signals the end of a correction. If that holds true, DOGE could be preparing for its next push upward.
Dixon marked $0.2075 as a key confirmation zone. A strong break above that level may show that buyers are back in control. Until then, $0.1820 remains the floor that traders are defending.
If DOGE fails to hold that support, Dixon warned of further targets. These include $0.1789, $0.1565, and in an extreme case, $0.1408. Each one reflects deeper Fibonacci extensions from earlier price moves.
Trader Tardigrade compared the current structure to a past pattern that led to a sharp recovery.
$Doge/D3:
In the previous structure, we observed a 65% drop followed by three bottoms in line and a decent surge.
In the current structure, #Dogecoin has reached a 73% correction, which is considered sufficient. Two bottoms have been seen, and the formation of the third bottom is… pic.twitter.com/11DrORcKOH— Trader Tardigrade (@TATrader_Alan) August 4, 2025
He noted a 73% correction from DOGE’s peak, nearly matching the 65% drop seen previously. In his view, two bottoms have already formed, and a third one may be close.
He added that such a setup has historically triggered strong rallies. Many traders now expect a breakout if this third bottom holds.
CoinGecko data shows DOGE trading around $0.2062 with daily volume near $1.7 billion. That is a 3.85% gain in the last 24 hours, even after a rough week.
Market watchers agree that this bounce must clear $0.2075 to confirm strength. Until then, every move around $0.1820 could shape Dogecoin’s next major trend.
The post Dogecoin Holds Key Support, Eyes Reversal Toward $0.2075 appeared first on Blockonomi.
