Originating as a meme, Dogecoin’s price skyrocketed from $0.05 in March 2021 to a peak of $0.76 by May 8, 2021. However, a broader crypto market downturn in November 2021 triggered a sharp price drop for DOGE.
From June 18, 2022, DOGE stabilized, oscillating between $0.051 support and $0.094 resistance. A significant 167% surge to $0.15 was observed on November 1, 2022, but this rally was fleeting, with prices plummeting back to $0.055 by June 10.
DOGE’s recent uptrend, which began on October 12 and accelerated from October 19, has broken past a crucial descending resistance line. This line, originating from its all-time high, has been a consistent barrier during DOGE’s bearish phase.
Given the wave structure indicating the last downtrend’s completion from November 2, this might be an initial bullish sign. Our analysis suggests that this current surge is the third wave of a nascent five-wave impulse, which could lead to another peak in the fifth wave.
This trajectory could propel DOGE past its resistance, potentially nearing its previous $0.083 high from July 25. However, this would still be within a broader horizontal range, and resistance at these levels might hinder further bullish progression.
If a bullish wave is indeed underway, a subsequent correction might ensue, testing previously broken resistance levels for support. A bullish outlook would remain viable if prices stay above $0.066. If this level holds, a more potent surge could target $0.016.
While DOGE has the potential to break above $0.075, it might first retest the recently breached descending resistance. In the short term, another peak is anticipated, concluding the current uptrend since mid-October.
If this scenario unfolds and DOGE remains above $0.066 during the subsequent correction, it suggests a potential bullish cycle for DOGE in the future.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.