Dogecoin struggles to hold $0.10 as risks remain high

Short-term bounce at $0.10: Buying opportunity?

Recent charts shared by cryptocurrency analyst KrissPax on X reveal that Dogecoin has repeatedly fluctuated around the $0.10 boundary. On May 23, DOGE dipped briefly below ten cents for the first time but swiftly recovered above it. This move, marked by a white arrow in the chart, underscores how investors quickly shifted to buying after the selloff.

A similar pattern emerged again on May 29, with Dogecoin forming a short-term bottom before pushing past the $0.10 range, highlighted by a yellow line. According to the analyst, such downward price pressure tends to force leveraged long-position traders to exit, paving the way for new buyers at lower levels and triggering a price rebound.

The latest recovery has brought Dogecoin close to the $0.1006 region. For now, ten cents serves as both immediate support and resistance. If DOGE manages to defend this area, it could retest resistance levels at $0.1015 and $0.1020 soon.

However, if the price falls below $0.10 again, the recent improvement could lose momentum. In that scenario, DOGE may revisit the $0.0980 band, which previously saw significant buying interest.

KrissPax points out that these price behaviors reflect a typical accumulation phase in Dogecoin, highlighting that investors are accumulating at lower levels whenever the price is under pressure.

Long-term risks: The Elliott Wave threat for DOGE

Looking at Dogecoin from a broader perspective, another notable analyst, Alex, offers a bigger picture analysis. According to shared charts, DOGE remains in the final phases of a correction that began after the 2020–2021 bull market. Alex identifies the previous major price surge as a completed Elliott five-wave movement.

After two major corrections labeled as A and B, Dogecoin is now believed to be in the final “Wave C” correction. The analyst notes that the lowest level of “Wave A” has not yet been breached; historically, “Wave C” often falls below the previous low point, suggesting further downside is common before a new cycle begins.

Another striking detail in the analysis: When assessing the entire 2020–2021 bull run, the Fibonacci 0.618 level sits in the $0.02 to $0.03 range. If DOGE pulls back this far, it could lay the foundation for a long-term bottom and set the stage for a fresh market cycle.

That scenario would first require DOGE to break below the “Wave A” bottom. For now, DOGE remains within this broad corrective structure; if selling pressure intensifies, the price could decline towards the $0.02–$0.03 area.

Glossary: Elliott Wave Theory — a chart analysis method in financial markets based on the idea that prices move in recurring wave structures. It suggests that market cycles consist of five impulsive upward or downward moves followed by three corrective waves. Crypto investors frequently use this framework to forecast major trends and turning points.

On the other hand, if DOGE can stay above its recent lows, the bearish scenario could be invalidated and a new wave of market recovery may begin. As a result, traders are watching the price action closely for any decisive moves.