Dogecoin (DOGE) Price Eyes Yearly High Despite Crypto Market Correction
Can Dogecoin Reach a New Yearly High? | Credit: Hameem Sarwar
Key Takeaways
- Dogecoin (DOGE) has nearly reached the $0.175 horizontal resistance area.
- Technical indicators give a signal that previously led to a 190% DOGE increase.
- Can history repeat itself, causing a Dogecoin price breakout and a new yearly high?
The start of November has not been kind to the cryptocurrency market. The Total Crypto Market Cap (TOTALCAP) created four successive bearish candlesticks and fell 4%. However, Dogecoin’s price has run counter to the market and has increased by over 2%.
Positive Dogecoin news could have aided the performance. The second annual Doge Day was on Nov. 2, marking the launch anniversary of the meme coin. Celebrations were held in Japan, starting with a Halloween Party, a guided tour of Tokyo, and an attempt to break the Guinness World Record for the most dogs brushing their teeth simultaneously.
Let’s analyze the DOGE price action and see if the price can maintain its momentum at the end of the year and reach a new yearly high.
Dogecoin Nears Yearly High
The weekly time frame DOGE chart shows the price has increased since falling to a low of $0.085 in August. The upward movement caused a breakout from a descending resistance trend line and a reclaim of the $0.118 horizontal area.
The reclaim was critical since it confirmed that the downward movement below it (black circle) was just a deviation rather than a breakdown. The area is now likely to act as support.
Last week, the price of DOGE reached the $0.175 horizontal resistance area but was rejected, creating a long upper wick (black icon). After the initial rejection, DOGE attempts to move above the resistance area again.
Technical indicators are unquestionably bullish. The weekly Relative Strength Index (RSI) has increased above 50, while the Moving Average Convergence/Divergence (MACD) has made a bullish cross and is above 0.
The last time this happened was in November 2023 (white) and led to a 190% upward movement toward the yearly high of $0.228 in March 2024.
If Dogecoin breaks out above $0.175, it could increase to the next long-term resistance at $0.335.
Dogecoin Prediction: Parabola or Correction?
Dogecoin’s wave count gives two possibilities for future trends.
The more bullish one indicates that the price of DOGE is in a series of 1-2/1-2/1-2 movements, meaning the move will soon become parabolic. The series of waves is in white, black, and yellow, respectively, starting at the largest degree.
The DDOGE price movement follows a parabolic ascending support trend line, aligning with this scenario.
The more bearish count indicates the DOGE price increase is part of a leading diagonal instead. In this possibility, DOGE has just finished wave five and will start an A-B-C correction soon, returning it to the $0.118 horizontal area.
The shape of the parabola makes this count less likely. Leading diagonals often have a descending wedge shape, contrasting the channel breakout in Dogecoin’s price.
The lack of bearish divergence in the daily RSI and MACD and the bullish outlook from the weekly time frame also reduce the likelihood of this short-term bearish Dogecoin price prediction.
Critical Resistance Ahead
Dogecoin’s weekly chart suggests that the long-term DOGE trend is bullish, and an eventual breakout is likely. However, the daily one offers mixed readings, especially evident in the wave count.
As a result, the reaction to the $0.175 area will be critical to determine the trend’s direction. A successful breakout can transform the upward movement to a parabola, taking the Dogecoin price to a new yearly high and the next resistance at $0.335.
On the other hand, a rejection can lead to a retest of the $0.118 area, validating it as support again.
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