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The path of Dogecoin’s price towards the coveted $1 mark is a topic of interest to cryptocurrency enthusiasts and traders alike. Once it reaches $1, Dogecoin will reach a new psychological threshold and set a new all-time high. However, there are different views on when and how this happens.
Technical analysis on the TradingView platform suggests that Dogecoin price could encounter resistance at $0.48, decline, and then resume its upward trajectory towards above $1.
Dogecoin price may be rejected at $0.48
Dogecoin is currently trading below $0.48, but technical analysis points to significant resistance around this price level. According to the Dogecoin price analysis on the 4-hour candlestick time frame, the $0.48 price level is the noteworthy level.
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This is because Dogecoin’s price has not yet shown any noticeable increase above this price level throughout the current bull market cycle. In particular, this rise was highlighted by two rejections just below the $0.48 price level, with Dogecoin's previous highest price being $0.475 on November 23rd and December 8th.
Analysts note that Dogecoin price recently experienced a solid rebound from the 200 EMA in the 4-hour time frame. This rally shows that the bulls are still in control as prices continue to show resilience against downward pressure. The confluence of support and bullish momentum at the 200 EMA provides the basis for an upward move in Dogecoin and sets the stage for the expected test of the $0.48 level.
Interestingly, Dogecoin is still unable to move above $0.48, so the price level is considered a liquidity zone. TradingView analysts emphasize that this level remains in focus, predicting that Dogecoin is likely to be rejected again at $0.48. Such a rejection could lead to a deeper pullback than previously seen during this bullish cycle, providing an opportunity for consolidation before attempting a stronger breakout.
What happens after retesting?
According to the analyst, a rejection at the $0.48 price level would cause Dogecoin prices to fall significantly, wiping out most of the gains accumulated in November. In particular, analysts are expecting a decline that would bury CME in the low zone down to the $0.20 price range. Such a move is expected to have a devastating impact on the sentiment of bullish investors, especially those who expect Dogecoin's price to quickly reach new all-time highs.
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Despite this expected pullback, analysts maintain a bullish long-term outlook. If Dogecoin reaches the $0.20 zone and completes its consolidation phase, we can expect a strong rebound afterwards. This pullback is expected to push the price decisively above the $0.48 resistance level, setting the stage for Dogecoin’s journey towards the long-awaited $1 milestone. With this in mind, analysts highlighted the $0.24 to $0.20 range as the ideal buy zone to make the most of this move.
Source: TradingView
At the time of writing, Dogecoin price is trading at $0.42, up 7% in the past 24 hours.
DOGE price held at $0.41 | Source: DOGEUSDT on Tradingview.com
Featured image created by Dall.E, chart on Tradingview.com
