The Dogecoin (DOGE) price is trading near the resistance line of a declining parallel channel. A break from it could result in a significant increase. Since May 2021, the DOGE price has been trading below a declining resistance line. The fall resulted in a low of $0.049 in June 2022. Since then, the price has been rising.
The price decreased from the declining resistance line and the $0.076 resistance area during October 24-31, 2022. This resulted in a high of $0.158 the following week, which is still in effect. In the daily chart, the price of DOGE has fallen below the resistance level of $0.07932, indicating that the meme coin has not acquired enough power to continue growing. Sideways trading in the $0.075-$0.078 range is the more likely scenario for the next several days.
DOGE/USD 1-day chart | Source: TradingView
But, the price activity has been anything but optimistic since the breakout. The DOGE price has fluctuated between $0.125 and $0.076 and is now trading near the latter. Also, the weekly RSI is barely below 50, indicating a bearish trend.
As a result, the weekly time frame is insufficient for predicting the direction of the future trend. Eventually, the daily RSI has risen over 50, signaling the start of a bullish trend.
To summarize, the most likely Dogecoin price prediction for the future is a gain toward the top of the range at $0.125. A breakout from the short-term parallel channel would confirm this. If the DOGE price closes below the $0.076 support, this bullish prognosis will be invalidated, and a drop to $0.055 is possible.
DOGE/USD 4-hour chart | Source: TradingView
The price of DOGE is returning to the previously formed support level at $0.07689 on the hourly chart. If the downturn continues, the breakout may be required for a strong drop to the $0.075 zone.
Billy Marcus and Jackson Palmer created the internet meme coin DOGE. Elon Musk, CEO of Twitter, has repeatedly stated that DOGE is his preferred cryptocurrency. While he hinted that Twitter would ultimately accept Dogecoin as payment, no confirmation has been provided.
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