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Dogecoin price journey towards the coveted $1 mark has been a topic of interest for crypto enthusiasts and traders alike. Reaching $1 will cement Dogecoin to a new psychological threshold and new all-time highs. However, there was different ideas of how and when this was going to happen.
A technical analysis on the TradingView platform suggests that the price of Dogecoin may face resistance at $0.48, find a downside, and resume its upward path towards $1 and above.
Dogecoin price may decline to $0.48
Dogecoin is it is currently trading below the $0.48 markbut technical analysis points to a significant resistance exists at this price level. According to the Dogecoin price analysis for the 4-hour candle time period, the price level of $0.48 is the watch.
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This is because the price of Dogecoin has not shown a significant break above this price level throughout the bull market cycle. In particular, the rally was highlighted by two rejections just below the $0.48 price level, with Dogecoin’s highest price to date at $0.475 on November 23 and December 8.
The analyst points out that the price of Dogecoin has recently received a strong bounce from the 200EMA in a period of 4 hours. This bounce means that the bulls are still in control, as the price continues to show resilience against downward pressure. The combination of support in the 200EMA and bullish momentum provides the basis for the rise of Dogecoin, setting the stage for the expected test of the level of $ 0.48.
Interestingly, Dogecoin’s inability to break above $0.48 however saw the price level being considered a breakout point. The analyst of TradingView emphasizes that this level remains fundamental, predicting that Dogecoin may face another rejection at $ 0.48. Such a rejection could lead to a deeper pullback than any seen so far during this bull cycle and provide an opportunity to consolidate before attempting a stronger breakout.
What Happens After the Retest?
According to the analyst, the rejection of the price level of $ 0.48 will see the price of Dogecoin drop significantly and erase most of the gains accumulated in November. In particular, the analyst considers a fall to fill the CME in the lower areas up to the $0.20 price area. Such a move is expected to have a negative impact on the sentiment of bullish investors, especially those immediate anticipation The new Dogecoin price is at an all time high.
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Despite this expected reversal, the analyst maintains a long-term bullish outlook. If Dogecoin reaches the $0.20 area and ends the consolidation phase, a strong rebound is expected to follow. This reversal is expected to drive the price confidently past the $0.48 resistance and set the stage for Dogecoin’s journey towards the much-anticipated historic $1. With this in mind, the analyst highlighted the $0.24 to $0.20 range as a good buy point to capitalize on this move.
At the time of writing, Dogecoin price is trading at $0.42 and has increased by 7% in the last 24 hours.
The featured image was created with Dall.E, a chart from Tradingview.com
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