The Dogecoin price is still gearing up for a move to break above its current all-time high but continues to face resistance around $0.45 to $0.46. This resistance has been quite notable since the beginning of December, but the long-term outlook remains positive.
According to a technical analysis on the TradingView platform, Dogecoin is set to go on a further 34% price increase from here, but short-term bearish corrections may continue before the anticipated rally gains full momentum.
Technical Analysis Points To Bullish Dogecoin Movements
Speaking of resistance, Dogecoin’s rally in the past 30 days has been hampered since it reached a three-year high of $0.4735 on November 23. Since reaching this high, the Dogecoin price has largely consolidated between this upper end and a low just below $0.37.
However, recent Dogecoin price performance since the beginning of November suggests this resistance might not hold for long. As noted by crypto analyst MadWhale on the TradingView platform, the Dogecoin price has recently broken through several long-established resistance levels, signaling a significant shift in market sentiment. Interestingly, these resistance levels range from $0.3 up to $0.46, which are price points that the meme coin hasn’t traded in for over three years.
MadWhale emphasized that this shift in momentum is not occurring in isolation. It is accompanied by rising trading volumes, a crucial indicator of increased investor interest and participation. With this in mind, technical analysis points to the Dogecoin price breaking above $0.48 very soon, and the analyst pointed to the next price target at $0.62.
Interestingly, the analyst has consistently provided accurate forecasts, identifying critical support and resistance zones well in advance during the current bull cycle. Back on November 11, the analyst had predicted a Dogecoin price surge to $0.36. At this time, the meme coin was trading at $0.28787, but immediately reached $0.36 in less than 24 hours after the prediction.
Short-Term Bearish Corrections Likely Before The Anticipated Rally
While the long-term outlook remains positive, the analyst cautions that short-term bearish corrections or consolidation periods may precede the expected rally. Such patterns are common in the cryptocurrency market, especially after breaking through resistance levels. What this means is that the Dogecoin price could face another correction in the next few days.
Notably, key support levels have been identified using the Fibonacci retracement indicator. One such support level identified is around $0.355.
At the time of writing, Dogecoin is trading at $0.449, having increased by around 4.58% in the past 24 hours. In terms of upward movement, Dogecoin is currently trading around a major resistance at $0.450, with the next resistance near the $0.4650 level.
Featured image created with Dall.E, chart from Tradingview.com
