Dogecoin price could book 55% gain if US Dollar is any guide

Dogecoin (DOGE) price action is set to jump massively in the last few weeks of this year. If it will be enough to pair back all the incurred losses of this year during its longest crypto winter remains to be seen. Guiding this will be the EURUSD, which has been trading higher for a fourth consecutive day.

DOGE sees its burden for 2022 become its savior

Dogecoin price is in a good mood this morning after the gains being booked on Monday. Although those gains could have been more, in the last few hours markets have rolled over. The overall element to retain is that the EURUSD has been trading much higher since last Friday. The US inflation numbers coming in much lower than expected are now seeing markets shift toward a stronger foreign currency against the dollar as markets expect the Fed will start to ease and possibly even stop its rate hikes after the last meeting in December.

DOGE price thus will enjoy the rally in EURUSD that could quickly return to 1.10, which means that DOGE has a huge potential to rally higher on the back of this. Add to that the element that traders are eagerly grasping any momentum to make up for the incurred losses for this year, which means that DOGE is set to break above $0.0944 soon before testing $0.10. Once that level is cleared, $0.1357 comes into play, seeing its double top from the beginning of November holding a 55% gain.

DOGE/USD daily chart

Risk to the downside could be at hand with a simple technical rejection at $0.0944. That resistance level would mean that Dogecoin is stuck in bandwidth, which could be trading back lower in search of support near $0.075 where the 200-day and the 55-day Simple Moving Average are close nearby. Should that area not hold, look for the monthly S1 near $0.0700.