The price of Dogecoin always prepare for a move above its current all-time high, but continues to face resistance around $0.45 to $0.46. This resistance has been quite notable since the beginning of December, but the long-term outlook remains positive.
According to a technical analysis on On the TradingView platform, Dogecoin is expected to see another 34% price increase from here, but short-term bearish corrections may continue before the expected rally gains full momentum.
Technical analysis indicates bullish movements in Dogecoin
Speaking of resistance, Dogecoin’s rally over the past 30 days has been hampered since hitting a three-year high of $0.4735 on November 23. Since reaching this high, Dogecoin price has largely consolidated between this upper end and a low just below $0.37.
However, Dogecoin’s recent price action since early November suggests that this resistance may not last long. As noted by crypto analyst MadWhale on the TradingView platform, the Dogecoin price recently broke through several long-established resistance levels, signaling a significant change in market sentiment. Interestingly, these resistance levels range from $0.3 to $0.46, which correspond to price levels where the meme coin has not been traded for over three years.
MadWhale emphasized that this change in dynamics is not happening in isolation. It is accompanied by an increase in trading volumes, a crucial indicator of increased investor interest and participation. With this in mind, technical analysis indicates that Dogecoin price will surpass $0.48 very soon, and the analyst indicated that the next price target is $0.62.
Interestingly, the analyst has consistently provided accurate forecasts, identifying critical areas of support and resistance well in advance during the current bull cycle. On November 11, the analyst had predicted a rise in the price of Dogecoin to $0.36. At that time, the meme coin was trading at $0.28787, but immediately shot up to $0.36 in less than 24 hours after the prediction.
Short-term bearish corrections likely ahead of expected rally
Although the long-term outlook remains positive, the analyst warns that short-term bearish corrections or periods of consolidation could precede the expected rally. Such patterns are common in the cryptocurrency market, especially after breaking through resistance levels. This means that Dogecoin price could face another correction in the coming days.
Notably, key support levels have been identified using the Fibonacci retracement indicator. One of these identified support levels is around $0.355.
At the time of writing, Dogecoin is trading at $0.449, having increased by approximately 4.58% over the past 24 hours. In terms of upward movement, Dogecoin is currently trading around major resistance at $0.450, with the next resistance near the $0.4650 level.
Featured image created with Dall.E, chart from Tradingview.com