Since then, DOGE has undergone a consolidation of the waves 4, forming a downhill channel which brought the price to $ 0.25 to its lowest wick on December 20, but quickly picked up and closed the daily candle to 0.30 $. Historically, this level acted as strong support, making it a key area to monitor.
Despite the retirement, DOGE remains in a wider bullish frame, as long as the price is higher at the level of $ 0.30. The relative resistance index (RSI) on the daily graph indicates a weak momentum, although a potential optimistic divergence is formed, which suggests that the sale pressure could slow down.
The key resistance is at $ 0.37 (0.5 retracent of Fibonacci), which previously rejected the ascending movements. If Doge can break this resistance on a strong volume, this would signal a potential start to wave 5.
However, if DOGE does not maintain the support at $ 0.33, a new downward pressure could push it to $ 0.30 (0.786 FIB level). A confirmed ventilation less than $ 0.30 would invalidate the bullish scenario and could lead to a deeper correction to $ 0.26, further extending wave 4.
Since December 20, we have seen an ascending channel which brought the price to a summit of $ 0.43 on January 18, which could be the first sub-sworn of the next bull phase. However, as he made a break below the ascending support during the following slowdown, it could also be the second counterpart of a number of complex corrections inside the wave 4.