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The price of Dogecoin journey towards the coveted $1 threshold has been a topic of interest for both cryptocurrency enthusiasts and traders. Reaching $1 would consolidate Dogecoin at a new psychological threshold and new all-time high prices. However, there were different perspectives on how and when this would happen.
A technical analysis on the TradingView platform suggests that Dogecoin price may encounter resistance at $0.48, experience a decline, and then resume its upward trajectory towards $1 and above.
Dogecoin price could be rejected at $0.48
Dogecoin is currently trading below the $0.48 markbut technical analysis indicated a considerable resistance located around this price level. According to Dogecoin price analysis on the 4-hour candle time frame, the $0.48 price level is one to watch.
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This is because Dogecoin price has not yet shown a notable breakout above this price level during the current bull market cycle. Notably, the rally was highlighted by two rejections just below the $0.48 price level, with the highest Dogecoin price so far being $0.475 on November 23 and December 8.
The analyst points out that Dogecoin price recently recorded a solid rebound from the 200EMA on a 4-hour timeframe. This bounce means that the bulls are still in control, as the price continues to show resilience against the downward pressure. The confluence of support at 200EMA with bullish momentum provides the foundation for Dogecoin’s upward movement, setting the stage for the expected test of the $0.48 level.
Interestingly, despite Dogecoin’s inability to break above $0.48, the price level has been regarded as a liquidity zone. The TradingView analyst points out that this level remains a focal point, predicting that Dogecoin will likely face another rejection at $0.48. Such a rejection could lead to a deeper pullback than we have seen so far in this bull cycle and offer an opportunity for consolidation before attempting a stronger breakout.
What happens after the retest?
According to the analyst, a rejection at the $0.48 price level would see the price of Dogecoin drop significantly and erase most of the gains accumulated in November. Specifically, the analyst expects a decline to fill the CME in the lower zones up to the $0.20 price zone. Such a move is expected to have a devastating effect on the sentiment of bullish investors, especially those anticipating a quick new all-time high Dogecoin price.
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Despite this expected pullback, the analyst maintains a long-term bullish outlook. Once Dogecoin reaches the $0.20 zone and completes the consolidation phase, a strong rebound is expected to follow. This bounce is expected to push the price decisively past the $0.48 resistance and set the stage for Dogecoin’s journey towards the long-awaited $1 milestone. With this in mind, the analyst highlighted the range from $ 0.24 to $0.20 as the ideal buying zone to make the most of this move.
At the time of writing, Dogecoin price is trading at $0.42 and has increased by 7% in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com