Dogecoin (DOGE) price broke a long-term descending resistance line. The wave count supports the continuation of the upward momentum.
DOGE price has been rising since December 30 and broke above a descending resistance line on January 2. Earlier, the line was from early November 2021. As a result, a breakout from this could lead to a sustained rally. The ongoing upward move has resulted in Dogecoin becoming the ninth largest digital asset in the cryptocurrency market based on its market cap.
If the upward move continues, the nearest resistance will be at the average price of $0.098, which is the 0.382 Fib retracement resistance level of the entire downtrend.
dogecoin broke out of the channel
Technical analysis from the short-term six-hour chart aligns with the daily time frame readings. The upward move in Dogecoin price resulted in a breakout from an ascending parallel channel. This is often a sign that growth is impulsive.
While the 0.618 Fibonacci retracement resistance rejected Dogecoin price, it is now validating the channel as support (green icon).
On the other hand, the breaking of the channel indicates that the movement was corrective, and new lows will follow for the meme coin.
Why The Upward Movement Will Continue For Dogecoin
The Dogecoin short-term price prediction shows that DOGE price is in sub-wave four of a five-wave upward movement (black). If the count is correct, it would mean that Dogecoin price will consolidate before completing sub-wave five.
A possible target for the top of the movement is between $0.100-$0.106. The target is formed by the 3.61-4.21 Fib extension (black) of the wave. It is also very close to the long term 0.382 Fib level from the previous section.
For the long term Dogecoin count, it is not certain whether the increase is part of long term wave one or wave A (white). While the former could eventually lead to a new all-time high, the latter indicates that it is in for a corrective rally. In any case, both calculations suggest that the trend is bullish in the short term.
A break below the sub-wave high (red line) at $0.075 would invalidate this bullish DOGE price analysis.
To conclude, the Dogecoin short term price prediction is bullish. The price is nearing the end of its corrective wave. After this, a move towards $0.100 would be the most likely scenario. A drop below $0.075 would invalidate this bullish DOGE price analysis.
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