Dogecoin (DOGE) is currently navigating a crucial phase in its price action. After a strong rally in recent weeks, the cryptocurrency is now undergoing a potential correction. As of May 13, Dogecoin is trading at $0.2234, marking a 7.28% decline. Traders and analysts are closely monitoring key support and resistance levels, which will play a crucial role in determining the next move for the cryptocurrency.

Recent Price Action and Correction

Since hitting a low on April 7, Dogecoin has experienced a steady rally, forming a clear three-wave upward movement. Some analysts had initially expected a longer, five-wave bullish pattern, but the market’s recent behavior suggests a more complex structure, likely indicating a diagonal pattern rather than a simple five-wave rally. This shift in market dynamics has raised questions about the sustainability of the bullish trend.

Key Support and Resistance Levels to Watch

Dogecoin is currently undergoing a potential B-wave correction, a phase that typically follows a strong rally. During this correction, the price may pull back before moving into the final phase of a larger corrective pattern. Analysts are keeping an eye on several key levels that could determine whether the cryptocurrency will recover or experience further decline.

Critical Support Zones:

• Primary Support Zone: $0.15 to $0.199 This range represents a critical level for Dogecoin. If the price holds above this zone, it could set the stage for a potential rebound. However, a break below this support could signal a deeper correction.

• Intermediate Support: $0.169 to $0.183 This is another important support level to watch. A bounce from this range could suggest that the correction is nearing its end, providing an opportunity for a potential recovery.

Resistance Zone:

• Key Resistance: $0.235 to $0.255 For Dogecoin to resume its upward movement, it must break through this resistance zone. A successful breakout would signal renewed bullish momentum, while failure to do so could mean a continued correction.

Understanding the B-Wave Correction

In Elliott Wave Theory, the B-wave correction follows a strong rally and typically involves a pullback before the market moves in the final C-wave. For Dogecoin to maintain a bullish outlook, it must hold the key support levels. If the price breaks below these zones, the correction could deepen, signaling a shift in market sentiment.

What’s Next for Dogecoin?

Looking ahead, Dogecoin’s price could follow an ABC corrective pattern. After the B-wave correction, a C-wave decline might follow, which could offer a fresh buying opportunity for traders. If Dogecoin fails to break above $0.26, the corrective structure could persist, but a breakout above $0.255 would shift the outlook to a more bullish scenario.

Analysts’ View: Short-Term Struggles, Long-Term Opportunity

While Dogecoin faces short-term challenges, analysts remain hopeful that the correction could present an opportunity for recovery. The key will be whether Dogecoin can hold above critical support levels, particularly the $0.15 to $0.199 range. If support holds, the cryptocurrency may bounce back and resume its upward trend.

Conclusion: A Crucial Phase for Dogecoin

Dogecoin is at a pivotal point in its price movement. The next few days and weeks will be critical in determining whether the cryptocurrency can recover or face further declines. Traders should watch key support and resistance levels closely to understand the next major move.

With the potential for both a rebound or further correction, the market remains unpredictable. However, by staying vigilant and watching these key price zones, investors can make more informed decisions about Dogecoin’s future direction.