Dogecoin Price Prediction: Are bears missing out on the bigger picture?

Dogecoin price validates the bullish trade idea mentioned earlier in the month. Now, bulls late to the party might face a challenge in the coming days.

Dogecoin price retesting support

Dogecoin price displayed favorable market signals during the first week of January, enabling day traders to partake in a 25% upswing toward the $0.09 zone. Now that the target has been breached, DOGE shows optimistic signals that the trend could continue. However, the profit-taking could prompt further downside before another run higher.]

Dogecoin price currently auctions at $0.081. The bears have forged lower highs by negating the recent attempt to rally higher and, in doing so, have produced a lower low at $0.077 compared to the previous point established on Monday at $0.081. The previous pivot point was unable to produce a settlement beneath the 8-day exponential moving average (EMA) on the 4-hour chart. The new low has produced the closing price below the barrier, which could be referred to as an early signal of changed market behavior.

Ultimately the DOGE price could continue to decline and retest prior resistance zones at $0.074, resulting in a 10% downswing.

Despite this fact, the Relative Strength Index (RSI), an indicator used to gauge the momentum of a trend, suggests the 25% rally could be the beginning stage of a much larger bull run as the pump breached overbought conditions into level 75. Based on the RSI, a decline in DOGE’s current market value should be viewed as a buying opportunity until either the 40 level is breached on the RSI or the origin point of the rally at $0.065 is tagged.

DOGE/USDT 1-day chart

A touch of the $0.065 level would void the bullish trend and create the possibility for a sweep-the-lows event targeting the 2022 low at $0.049. The DOGE price would decline by 40% if the bears were to succeed.