The Dogecoin (DOGE) price has fallen since reaching a high of $0.087 on Nov. 17.
The decrease caused a deviation above the $0.082 horizontal resistance area. Is this a sign of things to come?
Dogecoin (DOGE) Increases After Long-Term Breakout
The technical analysis on a weekly time frame indicates that in October, Dogecoin experienced a breakout from a descending resistance trend line. This trend line persisted for 900 days, resulting in three notable rejections (red icons) before the eventual breakout.
The Dogecoin price created five weekly bullish candlesticks during the upward movement.
Following the breakout, DOGE achieved a peak of $0.087 before a minor decline. After a bearish candlestick last week, the price is in the process of creating a bullish one this week.
After the breakout, the weekly Relative Strength Index (RSI) rose above 50.
The RSI serves as a momentum indicator employed by traders to assess whether a market is overbought or oversold, aiding in deciding whether to accumulate or sell an asset.
Readings surpassing 50 and an upward trend, suggest a prevailing advantage for bulls, whereas readings below 50 signify the opposite. Crossing the threshold of 50 is viewed as a positive indicator.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
What Are Analysts Saying?
Cryptocurrency traders on X (formerly Twitter) mostly give bullish Dogecoin price predictions.
MCP used a fractal from last year to determine that a parabolic increase will soon transpire. He stated that:
“One year ago, same price, similar chart low volume chop under resistance, then big breakout ~50-70% daily candle soon?”
HOPER also gave a bullish prediction, suggesting that the price will reach $0.18 until March 2024.
Finally, John Morgan tweeted a double bottom pattern, from which DOGE is currently breaking out. He gave a target of $0.11 for the upcoming upward movement.
It is also worth mentioning that the DOGE community is attempting to send a physical Dogecoin to the moon. This is planned to be done via ULA’s Vulcan Centaur Rocket on Dec. 12. The community noted on Wednesday that the first step towards making this a reality has already been approved.
Read more: (DOGE) Dogecoin Price Prediction
DOGE Price Prediction: Is Deviation a Cause of Concern?
While the weekly time frame gives a bullish reading, the daily one suggests that an initial retracement can occur before the DOGE price eventually resumes its increase.
This is because of the daily RSI and price action.
While the altcoin reached a high of $0.087 on Nov. 17, it fell below the $0.082 area afterward. A downward movement often follows this deviation above resistance.
Additionally, the daily RSI generated a bearish divergence during the highs (green). The trend line of the divergence is still intact.
While DOGE began an upward movement after the drop, it still trades inside the $0.082 resistance area.
If the area causes a rejection, The Dogecoin price can fall by 17% and reach the closest support at $0.067.
Despite the bearish DOGE price prediction, a close above the $0.082 area will mean the correction is complete. Then, Dogecoin could begin a 32% increase to the next resistance at $0.110.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/dogecoin-community-mission-price-moon/