In the current market cycle, 225 days after the Bitcoin halving, Dogecoin is showing strength. This marks a departure from the previous cycle when this cryptocurrency struggled to break through significant resistance levels. According to analyst Master Kenobi, Dogecoin has directly engaged with its green trend line. This is a positive development, as it signals increased volatility and stronger upward momentum compared to before.
Resistance and support zones play a crucial role
In the previous cycle, Dogecoin faced rejection at the $1.08 resistance after a strong price increase. However, the price quickly fell, consolidating for several weeks before rising higher. This cycle is different. Dogecoin's price is currently negotiating with the green trend line and appears much stronger. Tighter price volatility around the blue and green trend lines indicates less fluctuation. This change suggests that Dogecoin's upward momentum is currently stronger than before.
Furthermore, the $1 target by mid-December seems realistic, based on the trend lines of the chart. The price has tested resistance levels, and analysts believe it could rise higher, even towards the $2.90 mark. Master Kenobi considers this level bold, but not impossible. His analysis indicates that the target between $1.45 and $2.90 is still within reach, depending on market reaction.
Chart analysis and market trends
The chart illustrates Dogecoin's progression using trend lines that indicate key support and resistance areas. The green trend line marks the support level, holding firm during previous price consolidations. After breaking this support level, Dogecoin surged, reaching new resistance points. The yellow trend line at $1.08 is a major barrier, with price action consistently declining when testing it.
Additionally, the red trend line at $2.90 highlights the next major resistance area. Market behavior suggests this level could present significant obstacles, requiring strong upward momentum to break through. However, recent price action is bullish, giving analysts reason to believe that Dogecoin could soon test these levels.