Dogecoin (DOGE) price could be in the first part of a larger increase that will take DOGE price to a new yearly high.
DOGE price has been falling below the descending resistance line since November 2022. The line caused several rejections, the latest of which was on April 2nd.
However, the price broke out the next day and reached this year’s high of $0.105 (red icon). It has declined since then.
DOGE price could breach the resistance
The rejection validated the $0.100 resistance, which is the 0.382 Fibonacci retracement level and a horizontal resistance area. Fibonacci retracement levels act as a set of horizontal lines derived from the Fibonacci sequence, which indicate areas where support and resistance may be encountered.
If DOGE price breaks, the next resistance will be at $0.122, which is the 0.618 Fibonacci retracement resistance level. However, if another rejection occurs from the $0.100 area, DOGE price could drop to the descending resistance line at $0.080 again.
The daily relative strength index (RSI) is above 50 and is increasing. As a result, hacking is more likely to occur. (RSI) is a tool that helps traders understand whether a cryptocurrency is overvalued or undervalued by measuring how quickly its price is changing. It looks at how fast and how far the price has moved recently to see if it is time to buy or sell the cryptocurrency
Technical analysis from the short-term 2-hour chart supports the continuation of the rise. There are three main reasons for this.
First, the price broke out from the descending resistance line. This supports the breakout from the daily time frame. After that, DOGE price moved above the $0.090 minor resistance area. The region is now expected to provide support.
Finally, the movement since April 8 looks like a completed five-wave (black) bullish move. Therefore, all these indicators support the continuation of the increase.
The only downward development is that the 2 hour RSI has confirmed a bearish divergence (green line) over the past 24 hours. This may lead to a short-term correction before the rally continues.
A close below $0.090 could invalidate these bullish expectations. In this case, the internet meme coin could drop to $0.080.
In conclusion, the most likely DOGE price forecast is for a continuation of the increase towards the $0.010 resistance area and an eventual breakout. If that happens, the price of Dogecoin could rise to $0.122. However, if the area causes another rejection, a decline towards $0.080 could follow.
For the latest cryptocurrency market analysis from BeInCrypto, click here.
In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.