Dogecoin (DOGE) is showing early signs of what could be its strongest rally in 2025, according to Elliott Wave analysis shared by trader and market commentator Cantonese Cat (@cantonmeow). The analyst pointed out that DOGE has reclaimed a key Fibonacci level, potentially signaling the end of corrective price action and the start of a powerful impulsive leg.
The weekly chart indicates that DOGE may now be entering Wave 3, traditionally the most bullish and strongest wave in a five-wave Elliott structure. Historically, Wave 3 tends to generate momentum across multiple timeframes, attracting buyers and building broad market participation.
Elliott Wave and Fibonacci Levels in Focus
Cantonese Cat explained that the prior retracement, labeled as Wave 2, initially appeared to pull back to the 0.5 Fibonacci retracement of Wave 1. However, the asset dipped slightly further to the 0.382 level (~$0.117) before beginning to reclaim higher levels.
Currently, DOGE is hovering near the 0.618 Fibonacci retracement (~$0.20088). In Elliott Wave terms, reclaiming the 0.618 level on a weekly timeframe is often interpreted as a structural pivot, signaling that the previous bullish impulse may resume.
For traders, weekly closes above this golden-ratio band are particularly meaningful, as they increase the probability of a sustained uptrend, while rejection could keep DOGE locked in a range-bound pattern.
Historical Price Action Supports Potential Rally
Looking back, Dogecoin experienced a significant blow-off followed by a prolonged basing period between $0.05 and $0.10, which served as the foundation for the mid-2022 advance. The Wave 1 peak set the stage for a corrective Wave 2, and now technical signals suggest that Wave 3 could be imminent.
The current weekly candle is sitting near the 0.618 level, highlighting the market’s test of support at this crucial pivot. Analysts suggest that sustained acceptance above this point would provide a strong foundation for the next impulsive move.
Potential Price Targets for Wave 3
If Wave 3 unfolds as anticipated, Fibonacci projections provide a roadmap for potential upside:
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1.0 extension: ~$0.48
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1.272 extension: ~$0.89
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1.414 extension: ~$1.23
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1.618 extension: ~$1.96
These levels represent both acceleration targets and potential distribution zones. Traders often monitor these zones closely to manage risk and gauge whether the trend is gaining strength or approaching exhaustion.
Market Dynamics and Confirmation Signals
Beyond Fibonacci and wave counts, the strength of a potential Wave 3 rally will be determined by breadth, volume, and relative leadership. Analysts note that rising range, increasing trading volume, and Dogecoin outperforming its peers would confirm that the bullish impulse is gathering momentum.
Conversely, failure to maintain support near $0.20088 could result in another consolidation phase, delaying or weakening the anticipated Wave 3 advance. The next few weekly closes will be critical in assessing the validity of the setup.
Technical Implications for Traders
For those seeking actionable guidance:
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Bullish scenario: Weekly closes above $0.20 could trigger a powerful Wave 3, with initial targets around $0.48 and higher extensions at $0.89–$1.96.
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Bearish scenario: Rejection at 0.618 may see DOGE return toward $0.153 (0.5 Fib) or $0.117 (0.382 Fib) as Wave 2 consolidation continues.
Traders should watch for weekly confirmation above the pivot level, coupled with expanding volume, to validate the bullish thesis. Risk management is crucial given the inherent volatility of Dogecoin and cryptocurrency markets in general.
Conclusion: Dogecoin Eyes Third-Wave Surge
Dogecoin’s technical setup suggests that 2025 could see a major rally if Wave 3 gains traction. The reclaim of the 0.618 Fibonacci level (~$0.20088) is a critical inflection point, indicating a potential shift from corrective behavior to an impulsive upward leg.
With Fibonacci extensions pointing to $0.48, $0.89, $1.23, and $1.96, traders have clear targets for potential gains. Ultimately, confirmation of this third-wave advance will depend on sustained weekly closes above key support, growing trading volume, and DOGE outperforming peer assets.
If Wave 3 unfolds as theorized, Dogecoin could deliver one of its most powerful runs in 2025, offering both short-term trading opportunities and a potential path toward multi-bagger returns for patient investors.
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