Dogecoin price he is still preparing to go break above its current high but continues to face resistance around $0.45 to $0.46. This resistance has been particularly noticeable since early December, but the long-term outlook remains positive.
In accordance with technical analysis in TradingView platform, Dogecoin is set to continue its price increase of 34% from here, but a short-term bearish correction may continue before the expected rally takes full advantage.
Technical Analysis Points to Bullish Dogecoin Movements
Speaking of resistance, Dogecoin’s rally over the past 30 days has been interrupted since it reached a three-year high of $0.4735 on November 23. Since reaching this high, Dogecoin’s price has been largely consolidated between this high end and a low of less than $0 , 37.
However, Dogecoin’s recent price performance since early November suggests that this resistance may be long-term. As noted by crypto analyst MadWhale on the TradingView platform, the value of Dogecoin you just entered Many resistance levels have long been established, indicating a significant change in market sentiment. Interestingly, these resistance levels range from $0.3 to $0.46, which are price points that the meme token has not traded at in over three years.
MadWhale stressed that this shift in momentum is not happening in isolation. It is accompanied by an increase in trading volume, which is an important indicator of growing investor interest and participation. With this in mind, technical analysis points to the price of Dogecoin breaking above $0.48 in the near future, and the analyst points to the next price target at $0.62.
Interestingly, the analyst has consistently provided accurate forecasts, identifying critical support and resistance areas early on during the current bull cycle. Back on November 11, the analyst he had predicted Dogecoin cost increased by 0.36 US dollar. At this time, the meme coin was trading at $0.28787, but quickly reached $0.36 less than 24 hours after the forecast.
Short-Term Bearish Correction Almost Before Expected Meeting
Although the long-term outlook remains positive, the analyst warns that short-term bearish corrections or consolidation periods may precede the expected rally. Such patterns are common in the cryptocurrency market, especially after passing through resistance levels. What this means is that the price of Dogecoin may face another correction in the next few days.
Notably, important support levels have been identified using the Fibonacci retracement indicator. One support level identified is around $0.355.
At the time of writing, Dogecoin is trading at $0.449, up about 4.58% in the last 24 hours. In terms of upward movement, Dogecoin is currently trading around the greatest resistance at $0.450, with the next resistance near the $0.4650 level.
The featured image was created with Dall.E, a chart from Tradingview.com
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