Dogecoin’s Struggle and Speculation Amidst Market Changes

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Year-round, DOGE failed to show the expected performance, and even the sale of Twitter and its transformation into “X” did not deliver the anticipated results. The reason could be that Elon Musk is no longer as interested in Dogecoin as he used to be. While the whimsical billionaire has left it to its fate, interest in newly emerged meme coins with low market values has been multiplying.

Dogecoin (DOGE)

DOGE’s price has been struggling below a long-term resistance line since April 2021 and witnessed a low of $0.049 in June. Lawsuits filed against Binance and Coinbase within two days had shaken the markets. Later, the price jumped and broke the trend line last month. This was significant after many attempts.

The DOGE price breakout allowed for a peak of $0.108 in December, just below a critical horizontal resistance area. However, as the name of the third-largest meme coin keeps changing and many altcoins multiply in value, Dogecoin’s calmness began to be frustrating.

Dogecoin had accustomed investors to speculative price movements. However, without Elon Musk, we no longer see these movements. Moreover, as we have been pointing out for months, consistent miner sales have played a significant role in limiting the price throughout the year.

On the weekly chart, the RSI turned from 70, which is not very promising.

DOGE Price Prediction

On the daily chart, Dogecoin (DOGE) has been trading within a descending parallel channel since its peak in 2023. We had seen significant breakouts in similar structures before. These structures, seen as corrective, had caused a test on the support trend line of the channel on December 18th.

Fortunately, DOGE bounced from the horizontal support area of $0.087 and formed a long lower wick. This situation indicated that buyers’ expectations for a rise continued. On the other hand, popular crypto analyst Ali Martinez observed a significant increase in new DOGE addresses.

This increase in network activity is a promising sign for DOGE. If the expected upward breakout occurs, the price will need to surpass $0.105. Closures above this could trigger a rally up to $0.14. On the other hand, supports at $0.087 and below should not be overlooked in the event of a possible BTC decline.