- Dogecoin is in uptrend from past few days
- A decent chance for short-term investors
Dogecoin is trading around its 50 EMA (the blue line) and is in an uptrend at the moment .The coin is currently at its resistance level.
Dogecoin on daily chart
On the daily chart we can see a horizontal line (the yellow colored line) which shows that price has resisted multiple times here and whenever the price breaks this horizontal line it gives a bullish move. The same thing we can expect at these levels i.e. after consolidating for sometime at this level the price can give a breakout again and can show a bullish move once again. Though it would be safer if one enters at $0.1038 because after this price can move up to $0.1392 which is its next near resistance.
The trendline (the pink colored line) that is being marked on the chart shows that price has given a trendline breakout which is a positive sign; therefore along with horizontal line breakout trendline breakout can be taken as an additional confirmation.
MACD – The MACD has crossed in a bullish direction. When the blue line of the MACD crosses the orange signal line upward, it is considered a bullish crossing. The bullish crossover of the MACD on the daily chart of Dogecoin indicates a positive trend. The histogram bar shown in MACD are turning light green which shows that bulls are weakening but as soon as the price rises these bars will again turn dark green indicating that bulls are again strong.
Relative Strength Index (RSI) – The RSI curve has crossed the 50-point mark at 64.88, according to the relative strength index (RSI). The RSI curve’s overbought zone has been crossed, indicating bullish momentum. The rise in coin prices has enhanced the value of the RSI curve. If the price continues to rise, the RSI curve can rise sharply.
Analyst view and Expectations
Short-term investors should look forward to investing if we see a bullish trend in the coming weeks, while long-term investors should wait to buy until we see a “Golden Crossover” [when the 200 EMA is cut from below by the 50 EMA, signaling a buying opportunity].
Dogecoin’s future was the subject of a pessimistic technical study by CoinCodex, with 27 indicators producing negative signals and 7 bearish ones.
According to WalletInvestor’s dogecoin price forecast for 2023, it may fall to $0.00773 by November 23 of that year.
Based on historical data, DigitalCoinPrice predicted that the price of dogecoin would average $0.19 in 2023 and $0.32 in 2025. According to the website’s dogecoin price forecast, the price may have increased to an average of $1.09 by 2030.
Technical Levels
Major resistance -$0.2357
Major support -$0.0558
Conclusion
Dogecoin appears to be moving in a positive direction. Investors with short time horizons have opportunities. In the coming weeks, there might be a bullish upsurge.
Disclaimer: The opinions expressed in this article, including those of any people mentioned, are the author’s own and are not intended to constitute advice on finances, investments, or other matters. There is a chance of suffering a monetary loss while buying or selling cryptocurrencies.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/17/decoding-the-meme-currency-a-technical-analysis-of-dogecoin/