The Dogecoin (DOGE) price is on the brink of a turning point. After falling to a low of $0.049 in June 2022, the price started increasing, eventually leading to a breakout from the $0.076 resistance area on the week of Oct 24-31, 2022. This surge sent DOGE to a high of $0.158, a value which still stands. However, the price action since the breakout has not been particularly bullish, as the cryptocurrency has struggled to move past its resistance levels. In addition, the weekly Relative Strength Index (RSI) is currently just below 50, a sign of a bearish price trend.

In light of the current market situation, traders can look to the daily timeframe for clues regarding the coin’s next move. Here, the technical analysis leans bullish due to three observations - First, the DOGE price bounced at a long-term ascending support line in March. Secondly, the price reached the resistance line of a descending parallel channel. Finally, the daily RSI moved above 50, symbolizing a trend reversal. All these signals suggest that the Dogecoin price could potentially break out from the short-term parallel channel and move up to $0.125.

However, the future of DOGE could also take an alternate path. If the coin’s price closes below the $0.076 support, the development would invalidate the bullish outlook, opening up a potential pathway to a drop to $0.055.

Overall, the Dogecoin (DOGE) price is currently situated at a pivotal juncture that could ultimately dictate the coin’s future. While bullish signs are visible on the daily timeframe, a price closing below the $0.076 support could potentially threaten the optimist outlook and lead to a decrease to $0.055. Ultimately, traders will better grasp the coin’s next potential moves as the situation continues to develop.



Other News from Today