One of the best-performing meme coins DOGE reached a yearly high on 11th December but it can achieve a new yearly high before the year ends as it is experiencing a breakout which can result in upward movement. But it can also experience a decline in price. Many Analysts are saying that (DOGE) Price Can Reach Another Yearly High and here’s what i think.
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DOGE Price achieving another yearly high
After achieving a new yearly peak on December 11, the Dogecoin (DOGE) price has experienced a decline. Previously remaining below a prolonged horizontal resistance zone since December 2022, DOGE had encountered multiple unsuccessful breakout attempts.
Initiating a smooth upward trajectory starting in October 2023, DOGE successfully broke through the resistance area on December 6, ultimately attaining a new yearly high by December 11.
However, the price failed to sustain this upward momentum, slipping beneath the resistance in the current week.
Relative Strength Index
Utilizing the Relative Strength Index (RSI) as a momentum indicator, traders can assess whether the market is overbought or oversold, aiding in decisions to accumulate or sell an asset.
A reading above 50 with an upward trend favors bulls, while a reading below 50 signals the opposite. Despite a decreasing daily RSI, it remains above 50, providing a mixed outlook.
While the daily timeframe indicates a negative perspective, analysis of the six-hour chart suggests a probable retracement of the price decline.
Factors Contributing to price action
The primary factor contributing to this likelihood is derived from observed price action. Since December, DOGE has traded within a descending parallel channel, typically containing corrective movements and implying a probable breakout.
Recently, DOGE initiated an upward move after bouncing off the channel’s support trend line and the $0.087 horizontal support area. A tweet by cryptocurrency trader ChiefraT suggests that $0.087 will likely serve as the bottom, heralding an imminent upward movement for DOGE.
Presently situated in the upper portion of the channel, the price is approaching the resistance trend line, aligning with the long-term resistance at $0.095 from the daily timeframe.
In the event of a breakout, DOGE could experience a 12% increase, reaching the following resistance level at $0.105. Despite this optimistic DOGE price projection, a breakdown below the $0.087 area and the channel could deepen the correction, potentially leading to a 23% decline toward the closest support at $0.072.
Conclusion
To conclude, DOGE can achieve another yearly high if the breakout is bullish. DOGE surged achieving a yearly high on 11th December but the possibility of achieving another one is there. The market is optimistic about this since meme coins are surging massively currently and DOGE is one of the best-performing meme coins. Let’s see what will be the fate of the Dogecoin after the breakout.
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