The journey of Dogecoin's price towards the coveted $1 mark has been a topic of interest for both cryptocurrency enthusiasts and traders. Reaching $1 would solidify Dogecoin at a new psychological threshold and at a new all-time high. However, there have been many differing opinions on how and when this will occur.
Technical analysis on the TradingView platform shows that Dogecoin's price could encounter resistance at $0.48, drop down, and then continue to rise to $1 and even higher.
Dogecoin's price may be rejected at $0.48.
Dogecoin is currently trading below $0.48, but technical analysis has indicated a notable resistance level around this price. According to the price analysis of Dogecoin on the 4-hour candlestick timeframe, the price level of $0.48 is a key level to watch.
This is because the price of Dogecoin has not yet shown a significant breakout above this price level throughout the current bullish market cycle. Specifically, the bullish trend has been underscored by two rejections just below the $0.48 price level, with Dogecoin's highest price to date being $0.475 on November 23 and December 8.
The analyst points out that Dogecoin's price has recently had a strong bounce from the 200EMA on the 4-hour timeframe. This bounce indicates that the buyers are still in control, as the price continues to show resilience against downward pressure. The confluence of support at the 200EMA with bullish momentum lays the foundation for Dogecoin's bullish move, setting the stage for the anticipated test at $0.48.
Interestingly, Dogecoin has not been able to break above $0.48, yet this price is still considered a liquidity zone. The TradingView analyst emphasizes that this level remains a focal point, predicting that Dogecoin is likely to face another rejection at $0.48. Such a rejection could lead to a deeper pullback than any seen so far in this bullish cycle and create an opportunity for consolidation before attempting a stronger breakout.
What happens after a retest?
According to the analyst, a rejection at the $0.48 price level would cause Dogecoin's price to drop significantly and erase most of the gains it accumulated in November. Specifically, the analyst envisions a drop to fill the CME at lower regions down to the $0.20 price area. Such a move is expected to have a devastating impact on the sentiment of optimistic investors, especially those predicting that Dogecoin's price will quickly reach new all-time highs.
Despite this predicted pullback, the analyst maintains a long-term bullish outlook. As Dogecoin reaches the $0.20 range and completes the consolidation phase, a strong recovery is expected. This recovery is anticipated to push the price decisively past the $0.48 resistance level and set the stage for Dogecoin's journey towards the highly anticipated $1 milestone. With this, the analyst emphasized that the range of $0.24 to $0.20 is the ideal buying area to best capitalize on this move.
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