Insights on Dogecoin (DOGE) Price Movement and Predictions

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BTC has returned to the $49,300 region at the time of writing, reclaiming the $48,800 level. This recovery in the short term is supported by accelerated spot purchases. It’s too early to declare the downturn over, but the outlook is more positive as we approach the daily close. So, what are the predictions for Dogecoin (DOGE)?

Dogecoin (DOGE)

Dogecoin’s price has been moving within a rising parallel channel for a long time. On the daily chart, we see that the price, which has been fluctuating within this parallel channel since June 2023, broke upwards in December, reaching a peak of $0.107, opening the door for this breakout.

After the decline that began in January, the DOGE price returned inside the channel and tested the resistance line twice. These attempts confirmed the resistance, and the price continues to move relatively horizontally above the middle line of the channel, conducive to a rise.

The RSI is increasing on the daily chart, which is promising for the price. Moreover, the overall market sentiment is supportive as BTC has started to recover after the latest inflation data.

DOGE Price Prediction

Looking at the short-term view on the six-hour chart, we also see that the rise is set to continue. This is because the DOGE price managed to break out from the decreasing resistance trend line on February 9 and confirm it as support. Four days later, having confirmed this support, DOGE continues its upward trend.

Moreover, the recent jump is also supported by the RSI crossing into the neutral zone. However, there is a key level that the bulls need to overcome. The resistance trend line of the channel coinciding with $0.088 is still a challenging barrier. If the DOGE price can break through this area and continue its upward movement, we could see a 25% increase towards $0.102.

However, if BTC experiences a rapid correction and DOGE sellers return, closures below $0.078 could open the door to new lows. In the event of a potential oversold wave, $0.066 is a strong support area, and below that, the $0.5 level exists.

There is no significant news flow specific to Dogecoin, and Elon Musk seems determined to fade from the community’s memory. The whimsical billionaire, who declared cutting off his relationship with crypto, could have provided support for the price if he hadn’t done so, especially with the payment service licenses X acquired in the states.