- Dogecoin price has risen by 10% since January 1.
- DOGE nears strong resistance as bulls are at the midway point of the previous trading range.
- Invalidation of the bearish thesis could occur from daily settle above $0.083.
Dogecoin price is expected to face resistance near current price levels. Traders may consider waiting for a tradeable pattern before entering the market.
Dogecoin price nears conflict
Dogecoin price is up 10% since the start of the new year as early bulls took advantage of the last-minute selloff into the $0.06 zone on December 30, 2022. When observing the new uptrend, there is clear evidence of turbulence as bears’ profit-taking has taken place upon every new high. The presence of bears attempted to reverse the trend on January 10 and 11, and there is still evidence to believe they will try again in the days to come.
Dogecoin price currently auctions at $0.077. The uptrend’s resistance is displayed clearly on the Relative Strength Index (RSI), an indicator used to gauge the strength of a market move relative to speed and rebound zones. The RSI shows the DOGE price breaching extremely oversold territory during the December 30 selloff, which is only possible when bears control the trend.
Furthermore, the notorious meme coin token has yet to break out past overbought territories, suggesting the trend has reversed. DOGE’s sustained price fluctuations below the 65 level on the RSI constitute more of a countertrend spike as opposed to the start of a new impulsive rally.
A Fibonacci retracement tool surrounding the previous trading range throughout the fall shows DOGE trading at the 50% barrier. A spike into the 61.8% retracement at $0.081 is highly probable and would result in a 5% gain from Dogecoin's current market value.
DOGE/USDT 1-day chart
\When combining these factors, DOGE’s technicals still lean bearish unless the RSI shows the ideal breakout signal (breaking above the 70 level). DOGE would have to produce a daily closing candlestick above $0.083 to consider aiming for the other side of the range at $0.09 and a potential breakout targeting December’s monthly high at $0.11. The notorious meme coin would rise by 45% if the bullish scenario played out.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.