The bullish rally for Dogecoin began in the month of March when the price formed support at $0.065 level. The move caused a rise of approximately 67% in the span of a month and led to the creation of annual highs at $0.10500, but bears did not find doge price justifiable above the $0.1 level. The move was corrected by the bears and the price is currently headed toward the March low from where the price started its bullish rally.
Currently, the Dogecoin price is stuck in a consolidation zone ranging between $0.07150 and $0.07500. If bears can push the price below the lower wick of the candles in the consolidation zone, which resides near to $0.069 level, there is the possibility that the price might fall to $0.065 level causing a drop of -8.85%. Doge will lose all the gains it made in 2023 if a bearish move happens.
For Dogecoin to shift the trend and gain bullish momentum, bulls need to push price above firstly the immediate resistance level of $0.075 and furthermore above $0.08170 level for the bullish momentum to sustain. If bulls can push prices above $0.08170, there is a possibility that Doge price might retest the yearly highs and rise above $0.1 level.
Dogecoin And Elon Musk Tweets Correlation
For Dogecoin to shift the trend and gain bullish momentum, bulls need to push the price above firstly the immediate resistance level of $0.075 and, furthermore, above the $0.08170 level for the bullish momentum to sustain. If bulls can push prices above $0.08170, there is a possibility that Doge price might retest the yearly highs and rise above the $0.1 level.
Will Doge Price Decline To $0.065 level?
Chaikin Money Flow score is 0.11, indicating that there is still strength left in the market but it has started to dip. Doge price is trading below all the major EMAs indicating bearish momentum in the market. Price has also received rejection from the 20-day SMA of Bollinger and is headed toward the lower band inhabiting near the $0.068 level.
RSI is headed toward the oversold zone and currently trades at 38.31. The relative strength index has not crossed the 50 Mark since the beginning of May month indicating less buyer volume. The long/short ratio is 0.82 with 45.06% longs and 54.96% shorts, indicating bearish momentum is on the rise for Doge price.
Conclusion
The market structure and price action show that the price might break the recent support and head downwards. The technical parameters also favours the sellers and for the price to gain bullish momentum it needs to rise above the resistance level of $0.8170.
Technical levels
Major support: $0.065 and $0.05930
Major resistance: $0.09450 and $0.08170
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/05/22/dogecoin-price-prediction-doge-price-on-the-verge-of-breakout/