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Dogecoin analysis – This is how the course breakout can succeed

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Like many other altcoins, Dogecoin can also benefit from the bullish development on the crypto market. In addition to the positive mood, the community continues to hope that Dogecoin will be integrated into the short message service Twitter. Most recently, a huge transfer of 450 million DOGE from a Dogecoin whale caused the price to move. Since the beginning of the year, the cryptocurrency has risen by around 40 percent to currently $ 0.092 to the north. Also the suggestion of Tesla founder and Dogecoin fan Elon Musk, in one Commercial for McDonald’s performing when the fast-food giant accepts Dogecoin as payment in return caused cheers among memecoin investors.

The DOGE course is currently able to stabilize above the EMA200 (blue) and has tried to initiate a breakout above the orange resistance area in the last few days. However, the upper edge at 0.096 US dollars has not yet been overcome by the daily closing price. As soon as the DOGE price can stabilize above this resist level, the next relevant target range between US$ 0.106 and US$ 0.112 will become the focus of investors. On the downside, the support level at $0.085 is acting as the make-or-break level on the chart.

Course analysis Dogecoin (DOGE) 02/03/2023
Course analysis based on the pair of values DOGE/USDT on Binance

Bullish price targets: $0.096, $0.106/0.112, $0.137/0.144, $0.158, $0.171/0.180, $0.191, $0.212/0.224, $0.238, $0.263/0.297

Dogecoin: Bullish price targets for the coming months

Dogecoin must first try to generate a daily close above the USD 0.096. The bulls failed at this resistance as early as the middle of the week. If, on the other hand, the buyer side succeeds in dynamically overcoming this mark, the blue resistance area will come into focus. The DOGE course failed here at the beginning of the previous month. In the first attempt, the DOGE course should have a hard time here again, since the lows from March 2022 are also running here in addition to the December high. If the overall market can build on its price strength of the last few weeks and Dogecoin overcomes this area sustainably, the next target area between 0.137 US dollars and 0.144 US dollars comes into focus.

In addition to the 138 Fibonacci extension of the last price movement, there is also the higher-level 38 Fibonacci retacement of the entire downward movement from the all-time high. Already at the beginning of November, the DOGE price was unable to overcome this zone several times at the daily closing price. In view of the relevance of this chart area, increased profit-taking should be planned in this resistance zone. Should Dogecoin be able to overcome this area and also break through the cross-resistance from the history high and 161 Fibonacci extension of the current movement at 0.158 US dollars, a subsequent increase to the red resistance zone between 0.171 US dollars and 0.180 US dollars is to be planned. The bulls failed here several times in the spring of last year.

New course goals come into view

If the upper edge at 0.180 US dollars is also pulverized, the cross-resistance from the 200 Fibonacci extension and 50 Fibonacci retracement of the overarching price movement comes into view as a target mark. If the DOGE price does not consolidate back south and the buyer side remains in control, it is also conceivable that you will reach the medium-term price target of 0.212 US dollars. The annual high from the previous year 2022 can be found in the turquoise resistance area. However, if the bears remain abstinent here and the buyer side also pushes the Doge price above this resist area, a subsequent increase towards US$ 0.238 should also be taken into account. This means that an increase to the maximum long-term price target in the form of the parent Golden Pocket between 0.264 US dollars and 0.297 US dollars would no longer be ruled out.

Bearish price targets: $0.085, $0.077, $0.073, $0.066/0.063, $0.058/0.055, $0.052, $0.049, $0.041

Dogecoin: Bearish price targets for the coming months

If, on the other hand, the bears manage to cap the DOGE price in the orange resistance area, at the latest at USD 0.112 and sell it back towards the strong support at USD 0.085, there will be a short-term directional decision. If Dogecoin dynamically breaks this cross-support, the chances of a retracement back to the breakout level of the current price rise at $0.077 will increase. If the DOGE price does not stabilize here, the supertrend at 0.073 US dollars will come into focus as the target. Here the bulls must be there at the latest to avert a relapse to the area around the annual low. If the Bitcoin price (BTC) also falls more significantly, a retest of the support zone between 0.066 US dollars and 0.063 US dollars is also conceivable. Once again, resistance on the part of the buyer is to be planned.

The view is once again directed towards the lows of the previous year

However, if the entire crypto market corrects southwards in the coming months, a sell-off down to the green support zone between USD 0.058 and USD 0.055 should also be considered. If there is no price reversal to the north at the low from October 2022, the maximum bearish price target between USD 0.052 and the previous year’s low of USD 0.049 will come into the focus of investors as a target area. Looking at the indicators, no clear forecast can be derived. Both the RSI and the MACD indicator continue to show buy signals on a daily basis, but renewed price weakness should immediately turn these weak signals in the direction of sell.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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