Dogecoin (DOGE) Price Falls After Reaching High
The price of Dogecoin (DOGE) has dropped since reaching a high of $0.087 on November 17. This decline caused a deviation above the $0.082 horizontal resistance area, leading to speculation about future trends.
Dogecoin (DOGE) Increases After Long-Term Breakout
Technical analysis on a weekly time frame reveals that Dogecoin experienced a breakout from a descending resistance trend line that had persisted for 900 days. The breakout resulted in five bullish candlesticks and a peak price of $0.087 before a minor decline. However, the price is currently in the process of creating a new bullish candlestick this week.
What Are Analysts Saying?
Many cryptocurrency traders on X (formerly Twitter) are giving bullish predictions for Dogecoin’s price. One analyst, MCP, used a fractal from last year to predict a parabolic increase soon. Another analyst, HOPER, suggested that the price could reach $0.18 by March 2024. Additionally, John Morgan tweeted about a double bottom pattern and gave a target of $0.11 for the upcoming upward movement.
DOGE Price Prediction: Is Deviation a Cause for Concern?
While the weekly time frame is optimistic, the daily time frame suggests an initial retracement may occur before the price continues to rise. The daily RSI and price action indicate that the altcoin may experience a downward movement following its deviation above the $0.082 resistance area. A bearish divergence on the daily RSI further supports this possibility.
If the $0.082 resistance area causes a rejection, the price could fall by 17% and reach the closest support at $0.067. However, if the price closes above $0.082, it could indicate that the correction is complete and Dogecoin may experience a 32% increase to the next resistance at $0.110.
Hot Take: Dogecoin’s Future Outlook
The recent decline in Dogecoin’s price after reaching a high has raised concerns among investors. While some analysts predict a parabolic increase and bullish movements for DOGE, others caution about potential retracements and bearish indicators. The upcoming price action will determine whether Dogecoin can maintain its upward momentum or face further declines in the short term.
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