Dogecoin's Challenging Year and Possibilities for Recovery - Latest cryptocurrency news

Dogecoin’s Challenging Year and Possibilities for Recovery

2021 was a year frequently mentioned for Dogecoin, but 2023 has been a challenging year. However, there is still a chance to end the year on a high note. After countless events of the year, including the departure of Elon Musk, a drop in prices was an understandable situation. So, what is the reason for this optimism at the end of the year?

Dogecoin remained below the long-term downward trend line since its peak in May 2021. If you remember the SNL show in May, you would also recall how Elon Musk complicated the situation. DOGE experienced a continuous decline after initially approaching the target of $1 for the first time.

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Since the all-time high (ATH) day, the price of DOGE remained under the downtrend until October 2023, when it finally broke away from this trend line. Breakouts from the long-term structure are exciting for investors as they may indicate a change in trend. However, the horizontal resistance zone has not been reached yet despite the breach of the trend line.

On the weekly chart, the RSI is positive, and the price is relatively strong. There is some weakness due to the pressure from Bitcoin, but this problem is expected to end after Powell spills the beans at this time tomorrow.

The Doge price has broken through the $0.095 horizontal resistance area on the daily chart. Following the upward breakout, the price reached a peak of $0.107 but has not yet determined a clear direction. Despite reaching its annual high, the altcoin created a bearish candle related to BTC sales. The daily RSI is giving a mixed reading. On the bullish side, the indicator has escaped the downtrend line but is weakening.

What will determine the DOGE price is a potential bounce at $0.095. In the past, this could have been expected with Elon Musk’s support, but he is no longer present. However, we may see announcements related to upcoming DOGE space missions. Elon Musk could share something about the DOGE-1 space mission (where a few companies, including SpaceX, sent physical DOGE to the Moon) which could trigger movement. In a positive scenario, a bounce from $0.095 could raise the Dogecoin price to $0.145, but in the opposite scenario, we might see a pullback to $0.072.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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