For investors trading in the futures market, technical analysis is an important indicator in the cryptocurrency market. As of writing, Dogecoin is trading at the level of $0.1005. What clues does technical analysis provide for Dogecoin? We examine this question through detailed chart analysis and key support-resistance levels.
The daily chart of Dogecoin shows that the descending channel formation, which has been ongoing since November 2022, has broken with recent upward movements. Since the resistance line has not been retested after this momentum, it creates a big question mark on the DOGE front. The first point of interest for analysts is the price’s performance in making a retest.
The most important support levels to be followed on the DOGE daily chart, respectively, are $0.0955, $0.0920, and $0.0875. Especially if a daily bar closes below the $0.0875 level, it will cause the price to re-enter the formation zone and create selling pressure on the DOGE front.
The most important resistance levels to be observed on the DOGE daily chart, respectively, are $0.1048, $0.1121, and $0.1197. In particular, a daily bar closing above the $0.1048 level, which emerged as a significant obstacle during the last rise on December 6, will accelerate DOGE’s momentum.
The first notable formation structure in the daily DOGE/ETH chart is the ascending channel formation. The lack of a resistance break in the latest bar formations can lead to a significant selling pressure similar to the process that occurred on November 17th.
The most important resistance levels to be followed on the DOGE/ETH chart, respectively, are 0.0000455, 0.0000460, and 0.0000470. In particular, breaking above the 0.000047 level, which emerged as a significant obstacle during the last rise and intersects with the formation resistance, will accelerate DOGE’s momentum against Ethereum.