As the new year begins, a slight rally is being seen in the crypto market. On the very second day of the year, the total market has increased by about 1.3%, reaching above the $3 trillion level again. Bitcoin ($BTC ), Ethereum, and XRP ($XRP ) have recorded gains of 1-3%, while most meme coins are also seeing a rally. In the meantime, Dogecoin has suddenly caught everyone's attention.

Dogecoin's price has surged about 8.5% in a day and is currently trading around $0.1280. After weeks of decline, this movement feels differentтАФnot noisy, but also not to be ignored. Now the big question is whether this is just a small bounce or the beginning of a real recovery for Dogecoin.

Short-term Dogecoin Price Prediction after the recent breakout

Looking at the 4-hour chart, DOGE had been trapped in a clear downtrend for a long time. The price was continuously trading below a declining trendline, and every bounce faced selling pressure. Sellers were completely in control, and DOGE was consistently making lower highs and lower lows. During this time, the 100 EMA was also acting as a strong resistance.

Chart source: TradingView

The situation appears to have changed near $0.12000. The price briefly fell below this level, causing weak buyers to exit. After that, DOGE made a swift recovery and broke out above the downtrend line with good volume. The most important thing is that the price not only held above the trendline but also broke above the 100 EMAтАФwhich had not happened before.

RSI is also supporting this move. Coming out of the oversold zone, RSI is now around 63, indicating increasing momentum. Volume also looks better compared to the previous range.

Short-term Targets:

  • If the price stays above $0.12800, the next target may be $0.13500 and then $0.14200.

  • If this move fails and the price goes back below $0.12000, the structure may weaken, and a decline to $0.11500 is possible.

Long-term Dogecoin Price Outlook based on the daily chart

On the daily chart, Dogecoin had been trading within a Falling Wedge pattern for a long time. The price had been continuously slipping downwards with no sign of strength. Recently, $DOGE has broken out of this Falling Wedge, indicating a change in structure.

Chart source: TradingView

RSI is currently near the neutral zone, meaning it is neither overbought nor oversold. There is also a slight improvement in volume, which supports the breakout. However, the biggest challenge right now is the 21 EMA. On the daily timeframe, this EMA has acted as a strong resistance multiple times.

If Dogecoin successfully closes daily above the 21 EMA, then a long-term upside reversal may be more confirmed. In such a case, the first resistance may be $0.15000, followed by a zone from $0.18000 to $0.22000.

However, if the price weakens from here again, the risk of a decline to $0.10000 is not completely eliminated.

Expert View: Dogecoin Price Prediction

After the recent breakout, Dogecoin Price Prediction looks better than before, but it is not yet fully confirmed. The price has shown recovery from lower levels; however, it is still trading around a crucial resistance zone.

If DOGE can hold above strong supports and moving averages, then gradually higher levels may be tested. However, considering the high volatility of crypto, a sharp pullback is also possible upon weakness.

Disclaimer:

This information is for educational purposes only. Therefore, conduct your own research and seek expert advice before any investment.


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