Dogecoin Price Prediction: DOGE faces resistance as bears seek to reverse the trend
- 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.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
