The journey of Dogecoin towards the highly anticipated $1 milestone has captured the attention of cryptocurrency enthusiasts and traders worldwide. Achieving this target would not only mark a new all-time high for Dogecoin but also establish a significant psychological threshold in the crypto market. However, opinions vary on the timeline and path Dogecoin might take to reach this goal.
Technical Insights on Dogecoin’s Price Movement
Recent technical analysis performed on the TradingView platform indicates that Dogecoin’s price may face resistance at the $0.48 level. After this, it could potentially decline before regaining momentum to pursue the $1 mark and possibly exceed it.
Dogecoin Price Could Face Rejection at $0.48
Currently trading below the $0.48 threshold, Dogecoin is navigating a crucial resistance point. According to a 4-hour candlestick timeframe analysis, the $0.48 level is pivotal. So far, Dogecoin has encountered resistance just below this point twice, with the highest price reaching $0.475 on specific occasions in November and December.
The analysis highlights that Dogecoin recently experienced a robust bounce from the 200EMA on a 4-hour chart. This bounce signifies bullish control, as the price demonstrates resilience amid downward pressure. The confluence of support at the 200EMA, combined with bullish momentum, creates a strong foundation for Dogecoin’s potential upward movement, setting the stage for a critical test of the $0.48 level.
Despite Dogecoin’s challenges in surpassing the $0.48 mark, this level is seen as a zone of liquidity. The TradingView analyst stresses that this level remains a focal point, predicting that Dogecoin may encounter another rejection at $0.48. Such a rejection could lead to a more significant pullback than previously observed during this bull cycle, offering an opportunity for consolidation before a more robust breakout attempt.
What Comes After the Retest?
In the event of a rejection at the $0.48 level, the analyst anticipates a substantial drop in Dogecoin’s price, potentially erasing significant gains accumulated in November. Specifically, the price could fall to fill the CME gap in the lower zones, possibly reaching the $0.20 price zone. This decline could negatively impact the sentiment of bullish investors, particularly those hoping for a swift all-time high for Dogecoin.
Despite the potential pullback, the analyst maintains a long-term bullish perspective. Once Dogecoin consolidates within the $0.20 to $0.24 range, a strong rebound is expected. This rebound could propel the price decisively past the $0.48 resistance, paving the way for Dogecoin’s journey to the eagerly awaited $1 milestone. The analyst identifies the $0.20 to $0.24 range as an ideal buying zone for those looking to capitalize on this prospective price movement.
As of the latest data, Dogecoin is valued at $0.42, reflecting a 7% increase over the past 24 hours. This ongoing price activity underscores the dynamic nature of Dogecoin’s market behavior and its potential for future growth.
