dog coin (DOGE) price is approaching a convergence point between the resistance and support of a bullish pattern. As a result, a decisive movement could happen soon.
dog worth Has fallen below a descending resistance line since October 29. Most recently, the line caused a rejection on December 5th (red icon), catalysing the current downward movement that led to a December 28 low at $0.069. scarcity also caused daily RSI fall below 50.
If the downside momentum continues, there is a long-term ascending support line at $0.062 which would be expected to provide upside momentum. If this does not happen, the price of DOGE could drop to a new yearly low.
As a result, the most likely Dogecoin price prediction for January is movement between an ascending support line and a descending resistance line. Whichever line breaks first could determine the future long term Dogecoin price movement.
While there is currently no news on Dogecoin, it is worth mentioning that Dogecoin is the largest meme coin based on its market cap and is backed by Twitter CEO Elon Musk.
DOGE Price Analysis: Could There Be A Short Term Breakout?
The six-hour time frame offers a more bullish outlook, despite the bearish relative to the daily time frame. There are two reasons for this. Firstly, DOGE price is trading inside a descending wedge, which is considered a bullish pattern. Consequently, a breakout from the wedge is still the most likely scenario.
Second, the six-hour RSI has generated a bullish divergence, a signal that often precedes breakouts. The fact that the divergence occurs at the support line of the wedge further adds to its validity.
Lastly, a decisive move is likely to happen soon as DOGE price is trading near a convergence between support and resistance.
A breakout could project Dogecoin price for an uptrend in January and catalyze an upward move towards $0.09.
To conclude, DOGE price breakout is the most likely outlook due to the bullish short-term pattern. If this happens, the price of Dogecoin could go down to $0.09. On the other hand, a breakout of the wedge would indicate that the trend is bearish instead and would likely lead to a new yearly low.
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