The Dogecoin Price Reaches a New Yearly High
The price of Dogecoin (DOGE) recently reached a new yearly high on December 11 but experienced a sharp decline afterward. However, the price is still trading within a critical support area, leaving the possibility of a bounce.
Dogecoin Approaches Long-Term Resistance
Technical analysis of the weekly timeframe shows that DOGE had been following a descending resistance trend line since its all-time high in May 2021. Although the price broke out from this trend line in October 2023, it has not yet reached the main horizontal resistance area.
The Importance of RSI
Traders often use the Relative Strength Index (RSI) as a momentum indicator to determine whether a market is overbought or oversold. In the case of DOGE, the weekly RSI is increasing and above 50, indicating positive signs. Additionally, the RSI recently entered overbought territory.
DOGE Price Prediction: Breakout or Deviation?
On the daily timeframe, DOGE broke out from the main horizontal resistance area at $0.095 and reached a new yearly high of $0.107. However, it then created a bearish candlestick and experienced a significant decline. Despite this, the price is still within the $0.095 support area.
Mixed Signals from Daily RSI
The daily RSI provides mixed readings for DOGE. It initially broke out from its bearish divergence trend line but then fell from overbought territory and continues to decrease. The future trend will depend on whether the price bounces at $0.095 or gets rejected.
Hot Take: The Next Moves for DOGE
The upcoming price action for Dogecoin will be crucial in determining its future trend. A successful bounce at $0.095 could lead to a 50% increase towards the next resistance at $0.145. However, a rejection could result in a 25% drop to $0.072.
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