The Dogecoin (DOGE) price may have just entered the first phase of growth, which could eventually lead the price to new highs this year
The popular DOGE meme coin created by the Dogecoin project has been declining along a descending resistance line since November 2022.
The price bounced off this line many times.. The last time it happened was April 2nd..
As the results of the technical analysis of the daily chart show, the next day DOGE broke this line and updated the high of the year at $0.105 (red icon). After that, the token went down.
In the process of this jerk, the price also tested the resistance in the $0.100 area (Fibo level 0.382 and the horizontal resistance area).
If this barrier is successfully taken, then DOGE may aim at $0.122 (the next Fibo level is 0.618). If the price pulls back from the $0.100 area again, the coin may again fall towards the descending resistance line at $0.080.
Daily RSI holds above 50 and moves north. This supports the Dogecoin bullish scenario..
The shorter 2-hour timeframe is in line with the daily chart pattern and also points to continued upside potential.. First, here the price made a bullish breakout of the descending resistance line..
It also advanced above the minor $0.090 resistance area. Now this area can provide support to the market.
Read also: Will Dogecoin (DOGE) hold above $0.08 without the hype around Twitter
Meanwhile, wave analysis suggests that price movements since April 8 resemble a completed five-wave bullish structure (black).. This also speaks in favor of further strengthening of DOGE.
The only bearish signal is the 2-hour RSI, which has confirmed a bearish divergence (green line) in the last 24 hours. This may lead to a short-term correction before the continuation of growth.
Close below $0.090 will cancel the bullish outlook for the coin. This could cause the coin to fall in the direction of $0.080.
Thus, the most likely scenario for DOGE is continued growth towards the $0.010 resistance area and its ultimate break.
In this case, the price can reach $0.122. Meanwhile, a new bounce from this area can provoke a drawdown to $0.080.