Dogecoin’s Challenging Year and Potential Comeback

Dogecoin, which swept through 2021 and made a name for itself with its rise, had a difficult 2023. However, there is still a chance to end the year on a high note. It was understandable to see a negative price performance after the countless events of this year, including Elon Musk’s departure. So, what is the reason for the optimism at the end of the year?

Dogecoin (DOGE) Analysis

The king of meme coins has been stuck below the long-term descending resistance trend line since its peak in May 2021. If you recall the May SNL Show, you would also remember how Elon Musk messed everything up. DOGE, which came close to the $1 target for the first time ever, subsequently experienced a steady decline.

Since the ATH (all-time high) day, the DOGE price remained below the long-term trend line until it broke free in October 2023. Breakouts from such long-term structures are exciting for investors as they now may indicate a trend change. Although the trend line has been surpassed, the horizontal resistance area has not been reached yet.

On the weekly chart, the RSI is positive and the price is relatively strong. There’s some weakness due to Bitcoin‘s pressure, but this issue is hoped to end after Powell spills the beans tomorrow at this time.

Dogecoin Target Price

On the daily chart, the DOGE price has broken free from the $0.095 horizontal resistance area. After the upward breakout, the price reached a peak of $0.107 but has not yet determined a clear direction. Even though the altcoin saw its annual high, it created a bearish candle, which was related to BTC sales. The daily RSI gives a mixed reading. On the bullish side, the indicator has escaped the descending trend line but is weakening.

What will determine the DOGE price is a potential bounce at $0.095. In the past, this would have been expected with Elon Musk’s support, but he is no longer around. However, we might see announcements related to upcoming DOGE space missions. There is a chance that Elon Musk might share something about the DOGE-1 space mission (where several companies will send physical DOGE to the Moon via cargo, with SpaceX being just one of them) and trigger this.

In a positive scenario, a bounce from $0.095 could lift the Dogecoin price to $0.145, but in the reverse scenario, we could see a retracement to $0.072.