Last month’s surge was quite significant for Doge, but it failed to pull back until the price rejected a key level. Losing momentum last week, it broke down to a month low and recovered with 8% gains in the last 24 hours.
Following the November rally, which came without any major retracement, Dogecoin later faced resistance and formed a double-top pattern under the $0.5 level earlier this month. The bearish pattern led to a sudden fall last week before collapsing heavily into the $0.2 range this week.
The $0.26 level provided support yesterday and the price recovered well with a strong daily close above the $0.3 level on the hourly chart. Today, volatility enhanced and the price increased to where it trades at $0.345.
Doge’s recovery is currently reaching the $0.36 level that broke down as support in the mid-week. A rejection may occur when the price retests this mentioned level. This could trigger another reduction in the market.
But if the price increases above the mentioned level, the leading meme coin may break out to a new high in no time. Looking at yesterday’s interception from the bulls’ side, we may see a bigger recovery in the upcoming week if they continue to show commitment daily.
DOGE’s Key Level To Watch
If the price dips again, the $0.262 support could contain selling pressure. Failure to hold may lead to another breakdown of $0.22 and $0.18.
A push above the immediate $0.365 resistance could rally the price to a minor resistance of $0.42, followed by the main $0.48 resistance level. A break above it may see us to a new high of $0.6 and potentially $0.75.
Key Resistance Levels: $0.365, $0.48, $0.6
Key Support Levels: $0.262, $0.22, $0.18
- Spot Price: $0.345
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/dogecoin-price-analysis-prediction-december-21-doge-bounces-after-testing-a-month-low-signals-a-potential-buy/