Throughout the year, Dogecoin (DOGE) has failed to deliver the expected performance, with the sale and transformation of Twitter not meeting expectations. The reason behind this is Elon Musk’s waning interest in Dogecoin, as he seemingly leaves it to its fate while the market value of newly emerged meme coins with lower market caps has increased exponentially.
DOGE’s price struggled below a long-term resistance line since April 2021, hitting a low of $0.049 in June. The cryptocurrency market was shaken by lawsuits filed against Binance and Coinbase within two days. However, the price later jumped, breaking the trend line last month after numerous attempts, marking a significant achievement.
The price breakout allowed DOGE to reach a peak of $0.108 in December, just below a critical horizontal resistance area. However, as the third-largest meme coin’s name keeps changing and many altcoins have multiplied in value, Dogecoin’s calm has become frustrating.
Investors were accustomed to Dogecoin’s speculative price movements, but without Elon Musk, these movements ceased. Additionally, consistent miner sales, as previously highlighted, played a significant role in limiting the price throughout the year.
On the weekly chart, the Relative Strength Index (RSI) turned back from 70, which is not a very promising sign. In the daily chart, Dogecoin has been trading within a descending parallel channel since its 2023 peak, a structure often preceding significant breakouts.
Fortunately, DOGE bounced from the horizontal support area at $0.087, creating a long lower wick, indicating buyers’ continued bullish expectations. Crypto analyst Ali Martinez observed a significant increase in new DOGE addresses, a promising sign. If a breakout occurs as expected, the price must surpass $0.105, and closures above this level could trigger a rally up to $0.14. However, supports below $0.087 should not be overlooked in case of a potential Bitcoin downturn.