The Dogecoin (DOGE) price shows signs of a new upward movement by breaking out from a long-term diagonal and horizontal resistance level.
Dogecoin Reclaims Important Levels
The Dogecoin price had been decreasing below a descending resistance line since Nov. 1. The downward movement caused a breakdown from the $0.074 horizontal area on Dec. 28, leading to a low of $0.066 two days later.
However, the breakdown was not legitimate, since the DOGE price managed to break out from the descending resistance line and reclaim the $0.074 area on Jan. 10, validating it as support (green icons).
The reclaim was crucial since such deviations are usually followed by sharp upward movements. Moreover, the $0.074 area is very important since it had previously acted as support since the beginning of Nov.
If the upward movement continues, the closest resistance area is at $0.108.
The daily RSI supports the continuation of the upward movement. The increase was preceded by bullish divergence in the RSI (green line). Furthermore, the indicator has broken out from a descending resistance line and moved above 50. These are both considered signs of a bullish trend.
Therefore, the DOGE price trend is considered bullish as long as it does not reach a daily close below the $0.074 support area.
Dogecoin Long-Term Price Prediction for Jan
The Dogecoin long-term price prediction is bullish, both because of the bullish price action and the wave count. The wave count suggests that the Dogecoin price completed an A-B-C corrective structure (black) since Nov. 1. The sub-wave count is given in red, supporting the possibility that the second decrease is part of wave C.
If correct, the Dogecoin price has now begun a new upward movement. While it is not certain if the increase is part of an -B-C structure or a new bullish impulse, both would indicate that a significant increase will follow, which will take DOGE at least to the $0.108 resistance.
A decrease below the Dec. 31 minimum price (red line) of $0.065 will invalidate this count.
To conclude, it is possible that the Dogecoin price has begun a new upward movement that will take it back above $0.10. The trend is considered bullish as long as the price does not fall below $0.065.
For BeInCrypto’s latest crypto market analysis, click here
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Source: https://beincrypto.com/dogecoin-long-term-price-prediction-correction-complete/