Dogecoin (DOGE) has recently reclaimed a crucial support level and shattered a resistance line that has been holding strong since November 2022.
If the price of Dogecoin continues to climb, investors and enthusiasts alike are wondering if this breakout will pave the way for the cryptocurrency to reach its long-awaited goal of $1.
However, some experts continue to caution that the recent rally in Dogecoin may not be sustainable. Cryptocurrencies are notoriously volatile, and past performance is no guarantee of future success.
Dogecoin Loses Momentum
CoinMarketCap data shows the price of DOGE sitting above the retracement support level of $0.072, experiencing a decline of 1.73% within the past 24 hours. If the price were to break down from this level, it could potentially fall to the support level of $0.069.
Despite this, the long-term trend for DOGE remains bullish, as long as it stays trading above that line.
Recent technical analysis of the short-term two-hour chart reveals that on March 25, the price of DOGE broke down from an ascending support line that had been in place since March 10.
Over the next 24 hours, the line was confirmed as resistance, which may signal the end of the short-term upward movement. This shift in trend could potentially impact the overall trajectory of DOGE in the coming weeks.
What’s Next For Dogecoin?
With the recent breakdown of the ascending support line on the two-hour chart, some traders and investors may be questioning whether the price of Dogecoin will continue to climb toward $1 in the coming months.
While it’s impossible to predict the future movements of any cryptocurrency with complete accuracy, it’s worth noting that DOGE has experienced significant volatility in the past. The price of Dogecoin has surged and fallen dramatically in response to a variety of factors, including social media hype, celebrity endorsements, and general market sentiment.
Crypto total market cap rising a bit at $1.14 trillion on the daily chart at TradingView.com
Based on current analysis, it appears that the most probable scenario for the price of DOGE is a breakdown from the minor support level of $0.072, potentially leading to a decline toward the $0.069 support level.
However, there is also the possibility of a bullish reversal if the price of DOGE is able to reclaim its previous ascending support line. If this were to occur, it could lead to a potential increase in the price of DOGE to as high as $1.
Whether the price of DOGE will reach $1 in 2023 remains to be seen, but one thing is clear: the cryptocurrency’s dedicated community is not going anywhere anytime soon.
-Featured image from Shades of Grace