The Dogecoin (DOGE) price is approaching the convergence point between resistance and support of a bullish pattern. As a result, a decisive movement could occur soon.
The DOGE price has fallen below a descending resistance line since Oct. 29. More recently, the line caused a rejection on Dec. 5 (red icon), catalyzing the current downward movement, which led to a low of $0.069 on Dec. 28. The decrease also caused the daily RSI to fall below 50.
If the downward movement continues, there is a long-term ascending support line at $0.062, which would be expected to provide a bounce. If it doesn’t, the DOGE price could fall to a new yearly low.
As a result, the most likely Dogecoin price prediction for January is movement between the ascending support line and the descending resistance line. Whichever line breaks first could determine the future long-term Dogecoin price movement.
While there is no current Dogecoin news, it is worth mentioning that Dogecoin is the largest meme coin based on its market cap and supported by Twitter’s CEO, Elon Musk.
DOGE Price Analysis: Can Short-Term Breakout Occur?
Despite the relative bearishness of the daily time frame, the six-hour one provides a more bullish outlook. There are two reasons for this. First, the DOGE price is trading inside a descending wedge, which is considered a bullish pattern. As a result, a breakout from the wedge is still the most likely scenario.
Second, the six-hour RSI has generated bullish divergence, a sign that often precedes breakouts. The fact that the divergence occurs at the support line of the wedge further increases its legitimacy.
Finally, since the DOGE price is trading close to the convergence between support and resistance, a decisive move is likely to occur soon.
A breakout could make the Dogecoin price prediction for January bullish and catalyze an upward movement toward $0.09.
To conclude, due to the bullish short-term pattern, a DOGE price breakout is the most likely outlook. If this occurs, it could take the Dogecoin price to $0.09. On the other hand, a breakdown from the wedge would indicate that the trend is bearish instead and would likely lead to a new yearly low.
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.
