The Dogecoin (DOGE) price could be in the first portion of a larger increase that will take the DOGE price to a new yearly high.
The DOGE price had fallen under a descending resistance line since November 2022. The line caused numerous rejections, the most recent on April 2.
However, the price broke out the next day and reached the highest price of the year at $0.105 (red icon). It has decreased since.
DOGE Price Could Break Through Resistance
The rejection validated the $0.100 resistance, which is the 0.382 Fib and a horizontal resistance area. Fibonacci retracement levels operate as a set of horizontal lines derived from the Fibonacci sequence, which indicate areas where support and resistance may be encountered.
If the DOGE price breaks out, the next resistance would be at $0.122, which is the 0.618 Fib retracement resistance level. However, if another rejection from the $0.100 area occurs, the DOGE price can fall to the descending resistance line at $0.080 again.
The daily Relative Strength Index (RSI) is above 50 and increasing. As a result, a breakout is more likely to occur. The (RSI) is a tool that helps traders understand if a crypto is overvalued or undervalued by measuring how quickly its price is changing. It looks at how fast and how big the price has moved recently to figure out if it might be time to buy or sell the crypto
The technical analysis from the short-term two-hour chart supports the continuation of the increase. There are three main reasons for this.
Firstly, the price broke out from a descending resistance line. This supports the breakout from the daily time frame. Next, the DOGE price moved above the minor $0.090 resistance area. The area is now expected to provide support.
Finally, the movement since April 8 looks like a completed five-wave upward movement (black). Therefore, all these signs support the continuation of the increase.
The only bearish development is that the two-hour RSI has confirmed a bearish divergence (green line) during the past 24 hours. This could lead to a short-term correction before the continuation of the increase.
A close below $0.090 would invalidate this bullish forecast. In that case, the internet meme coin could fall to $0.080.
To conclude, the most likely DOGE price forecast is the continuation of the increase toward the $0.010 resistance area and eventual breakout. If that occurs, the Dogecoin price could increase to $0.122. However, if the area causes another rejection, a decrease toward $0.080 could follow.