Dogecoin (DOGE) price returns to support after year high
The price of Dogecoin (DOGE) hit a new yearly high on December 11th but has since declined significantly.
Despite the decline, the price of DOGE still hovers in a critical support area. Will he be able to get out?
Dogecoin is about to reach long-term resistance
Technical analysis from the weekly time frame shows that the price of DOGE has been following a bearish resistance trend line since the May 2021 peak. After several failed attempts (red icons) DOGE from the long-term trend line in October 2023
Although the price has disappeared, the main horizontal resistance has not yet been reached.
With RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate or sell an asset. Bulls have the advantage if the RSI reading is above 50 and the trend is up, but if the reading is below 50, the opposite is true.
The weekly RSI is rising and is above 50, both positive signs. Additionally, the cursor has just crossed over to the purchased state (green icon).
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DOGE Price Prediction: Divergence or Divergence?
The technical analysis of the daily time frame shows that the price of DOGE has risen above the main horizontal resistance position by $0.095. This led to a new Dogecoin yearly high of $0.107 yesterday, well above last year's high of $0.105.
Despite the annual high, the price of DOGE formed a bearish candle (red icon) and fell sharply yesterday. However, DOGE price is still trading in the $0.095 support area.
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Daily RSI gives a mixed reading. On the downside, the indicator broke out of the bearish divergence trend line (green). However, it is falling from its over-subscribed territory.
Due to these mixed readings, DOGE price will determine the future trend if it rises or declines by $0.095. A successful strike can lead to a 50% increase to $0.145, while a failure can lead to a 25% drop to $0.072.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
