Dogecoin Price Trajectory at a Crossroads — $0.18 Area Shapes DOGE’s Next Move

Key Takeaways

• Dogecoin’s price broke out from a 650-day resistance area in February 2024.
• Despite being the largest memecoin, DOGE has underperformed several others this year.
• What are the key levels to watch, and how might they influence Dogecoin’s movement?

Dogecoin’s recent price action has drawn attention as it broke out from a 650-day resistance area in February 2024. However, since reaching its yearly high of $0.23 in March, DOGE has experienced a decline.

Now, the focus turns to whether it can find support at the $0.18 level or if further downside is ahead.

How Does Dogecoin’s Long-Term Trend Look?

The weekly time frame chart shows the DOGE price broke out from the $0.13 horizontal area in February 2024. The breakout was crucial since the resistance area had existed for over 650 days.

After breaking out, DOGE validated the area as support (green icon) in March and reached a new yearly high of $0.23. Even though the DOGE price has fallen since, it was not rejected by any long-term resistances. Rather, the main resistance area is at $0.30, 60% above the current price.

Technical indicators show the rally is overextended since the RSI is deep into overbought territory. However, there is no bearish divergence in the RSI nor MACD, which would warn of an impending local top.

As a result, a look at a shorter timeframe is needed to determine if the DOGE  price will return to the $0.13 area or increase to $0.23 instead.

DOGE Price Prediction: Continuation or Breakdown?

The daily time frame wave count indicates that DOGE is in the fifth and final wave of its upward movement that started in August 2023. Despite this, it is not clear if wave five has ended.

The bullish scenario suggests that DOGE has only completed the first portion of wave five, which will extend and have the same length as waves one and three combined.

In this case, the DOGE price can continue increasing toward $0.27, approaching the previously outlined long-term resistance area.

The bearish count suggests that DOGE has already completed its five-wave increase. If the count is correct, the memecoin is in wave B of an A-B-C corrective structure, which can end near the $0.14 horizontal support area.

The reaction to the $0.18 support area where DOGE bounced on April 10 (green icon) will be key in determining which count will transpire. A breakdown makes the bearish count much more likely, while a bounce will advocate for an increase to $0.27.

$0.19 Area Critical for the DOGE Trend

To conclude, despite breaking out from a long-term resistance level, the short-term DOGE price trend is still at a crossroads. Two possible wave counts are still in play, and the reaction to the $0.19 area will play a crucial role in determining which will play out.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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