Dogecoin (DOGE) Price Approaches Key $0.10 Level

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The Doge­coin (DOGE) price saved a plunge by cre­at­ing a bull­ish can­dle­stick on Jan. 31. The upward move­ment could con­tin­ue toward $0.115.

The tech­ni­cal analy­sis from the week­ly time frame shows that the Doge­coin price is trad­ing below its main resis­tance at $0.115. The area had pre­vi­ous­ly pro­vid­ed sup­port, but the DOGE price broke down from it in May 2022. 

Then, the area turned to resis­tance in Oct. If the DOGE price were to break out, the next resis­tance would be at an aver­age price of $0.175. 

While the week­ly RSI is increas­ing, it is bare­ly above 50 and has not gen­er­at­ed any bull­ish diver­gence yet. There­fore, more is need­ed to pre­dict that the upward move­ment will continue.

On the oth­er hand, if the dig­i­tal cur­ren­cy price were to break down from its long-term ascend­ing sup­port line at $0.080, it could begin a down­ward move­ment to $0.050.

Dogecoin (DOGE) Weekly Movement
DOGE/USD Week­ly Chart. Source: Trad­ingView

Dogecoin Price Reclaims Crucial Resistance 

The dai­ly chart pro­vides a more deci­sive­ly pos­i­tive out­look for the meme coin, most­ly due to the bull­ish can­dle­stick on Jan. 31, which caused a break­out from the 0.618 Fib retrace­ment resis­tance level.

The increase above the 0.618 Fib retrace­ment resis­tance lev­el was impor­tant not only because of the price action but because it inval­i­dat­ed a bear­ish diver­gence that had been devel­op­ing in the dai­ly RSI.

There­fore, the increase is expect­ed to con­tin­ue toward $0.115.

Dogecoin (DOGE) Daily movement
DOGE/USD Dai­ly Chart. Source: Trad­ingView

Wave Count Supports Increase

Final­ly, the wave count sup­ports the con­tin­u­a­tion of the upward move­ment, even though a short-term drop could ini­tial­ly occur. 

It seems that the DOGE price is in wave two of a five-wave upward move­ment (white), which could com­plete over the next 24 hours. The sub-wave count is giv­en in black.

Due to the con­sid­er­able over­lap in the upward move­ment from Jan. 25 to now, which led to the high­est price of $0.097, it is like­ly that the move is part of the B sub-wave. 

So, the upward move­ment is expect­ed to con­tin­ue after a short-term drop that com­pletes the C sub-wave. Since what would fol­low is wave three, the upward move­ment could accel­er­ate fur­ther toward at least $0.115 and pos­si­bly $0.175. 

On the oth­er hand, a deci­sive close below the sub-wave four low­est price (red line) at $0.077 would inval­i­date this count since it would also cause a break­down from the long-term ascend­ing sup­port line. Then, the Doge­coin price could fall below $0.050.

Dogecoin (DOGE) Price Count
DOGE/USDT Dai­ly Chart. Source: Trad­ingView

To con­clude, the most like­ly Doge­coin price fore­cast sug­gests that the DOGE price will at least reach the $0.115 resis­tance area. How­ev­er, a close below $0.077 would inval­i­date this bull­ish price analy­sis and could send DOGE toward $0.050.

For BeInCrypto’s lat­est cryp­to mar­ket analy­sis, click here.

Disclaimer

BeIn­Cryp­to strives to pro­vide accu­rate and up-to-date infor­ma­tion, but it will not be respon­si­ble for any miss­ing facts or inac­cu­rate infor­ma­tion. You com­ply and under­stand that you should use any of this infor­ma­tion at your own risk. Cryp­tocur­ren­cies are high­ly volatile finan­cial assets, so research and make your own finan­cial decisions.

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