Dogecoin (DOGE), the meme coin once heavily endorsed by Elon Musk, has not been able to deliver the expected performance this year, with Musk seemingly forgetting about it for a long time. Investors who were hopeful in December are still waiting for a significant return. While many altcoins have reached new all-time highs, DOGE struggles to maintain a price above $0.1. The current data and predictions raise questions about its future trajectory.
Since December 2022, DOGE has been unable to break through a horizontal resistance area, leading to new historical lows. After an uptick in October, DOGE briefly surpassed this resistance on December 6, setting its 2023 peak on December 11. However, fluctuations in Bitcoin (BTC) prices caused DOGE to fall back below the resistance level this week. The RSI remains above the neutral zone, but the lack of BTC support and upcoming PCE inflation data, coupled with expected lower volumes due to Christmas, have led DOGE sellers to reduce their risks.
Early today, BTC tested the $43,500 level as Asian markets opened but could not sustain it. The excitement over ETFs has prompted some investors to start taking profits, and at the time of writing, BTC stands at $42,382.
Daily chart readings send negative signals for DOGE, but the shorter-term 6-hour chart looks relatively optimistic, mainly due to price action. Since December, DOGE has been trading within a descending parallel channel that typically includes corrective movements, suggesting a potential breakout.
Recently, DOGE bounced off the channel’s support trend line and the horizontal support area at $0.087, with a popular crypto analyst suggesting this could be a turnaround. At the time of writing, DOGE is trading at $0.09. If the price remains above the channel’s upper part and breaks the long-term resistance at $0.095, it could rise to $0.105. However, closures below the $0.087 support could lead to a drop to $0.072.