Bitcoin price lingers around the $52,000 mark, with some altcoins shifting from resistance to support while others rise. Significant breakouts are happening among altcoins. Is Dogecoin (DOGE) among these, or does it have such potential? At the time of writing, the DOGE price was at $0.085.
Dogecoin (DOGE)
On the weekly chart, the DOGE price has been trading within a rising parallel channel since June of last year. On December 4th, DOGE bulls exited the channel, setting a new high for 2023 at $0.108. The price then began to weaken following a change in overall market sentiment and a sell-off after ETF approval news.
The DOGE price re-entered the channel and has twice confirmed the resistance trend line. Despite the prevailing downtrend, the price has managed a weak bounce from this region without breaking downward. It is now approaching the resistance trend line again.
DOGE Price Prediction
The daily RSI is giving bullish signals for further price increases. The RSI moving above the neutral zone and a somewhat recovering price are more promising. Analysis on the six-hour short-term chart is consistent with the daily, indicating an uptrend. The price confirmed this by overcoming the decreasing resistance line on February 12th, supporting the possibility of the trend continuing.
Despite recently breaking the $0.088 resistance level, DOGE price has not been able to sustain it. While this is a sign of weakness, it is still trading above the $0.083 support level, which is positive. Bitcoin’s price lingering around $52,000 also provides support for altcoins. However, this could be neutralized by the potential for reduced volumes during the upcoming weekend, which could give bears an advantage.
If the DOGE price rises above $0.088 and breaks out from the long-term channel, it could ascend towards the next resistance at $0.102. In the opposite scenario, a close below $0.083 could see the price drop to $0.077.
Weekend volume-related declines could support a bearish scenario. However, if today’s ETF entries remain strong, a repeat of the previous weekend’s scenario is possible.
