The analyst noted that the price pattern could alternatively be forming a leading diagonal that started in late 2023. Leading diagonals often appear at the beginning of a new impulsive cycle, but they are also characterized by steep retracements before the larger trend continues. He added that Dogecoin’s retracement has already satisfied the 0.5 Fibonacci retracement level, while the 0.618 level, which is considered a stronger support zone, lies only a few cents away.
Despite Dogecoin bulls defending around current support zones between $0.15 and $0.17, the technical analysis projected a potential deeper drop scenario. In this case, the worst-case outlook would involve Dogecoin revisiting the “single-digit cents” area, specifically the 0.618 to 0.786 Fibonacci retracement levels, as shown on the chart below.
Such a decline would not necessarily invalidate a long-term bullish structure, but it would reflect a final flush-out typical of late-stage corrections in an impulse wave that goes back as far as mid-2021.
