Dogecoin Price Approaches $1 Amid Resistance at $0.48
The Dogecoin price journey toward the $1 mark has attracted interest from crypto enthusiasts and traders. Achieving this milestone would establish Dogecoin at a new psychological threshold and set new all-time highs. However, opinions vary on when and how this will occur.
A technical analysis on TradingView indicates that Dogecoin may face resistance at $0.48, potentially decline, and then resume its upward trajectory toward $1.
Dogecoin Price Could Reject At $0.48
Dogecoin is currently trading below $0.48, with technical analysis highlighting significant resistance around this level. The 4-hour candlestick timeframe shows that Dogecoin has not yet sustained a break above $0.48 during the current bull market cycle, having faced two rejections just below this mark, with a peak price of $0.475 on November 23 and December 8.
The recent bounce from the 200EMA on a 4-hour timeframe suggests that bulls remain in control, indicating resilience against downward pressure. This support, combined with bullish momentum, sets the stage for a potential test of the $0.48 level.
Due to Dogecoin's failure to break above $0.48, this price point is viewed as a liquidity zone. Analysts predict another rejection at $0.48 could lead to a pullback deeper than previously seen, offering an opportunity for consolidation before a stronger breakout attempt.
What Happens After The Retest?
A rejection at $0.48 could result in a significant decline, potentially erasing most of the gains made in November, with analysts envisioning a drop to fill the CME in lower zones, possibly down to $0.20. This scenario might negatively impact bullish sentiment among investors expecting a quick return to Dogecoin’s all-time high.
Despite this anticipated pullback, a longer-term bullish outlook remains. Following a drop to the $0.20 zone and subsequent consolidation, a rebound is expected, propelling the price above the $0.48 resistance and advancing toward the $1 target. The $0.24 to $0.20 range is highlighted as the optimal buying zone for capitalizing on this potential move.
As of now, Dogecoin is trading at $0.42, reflecting a 7% increase in the past 24 hours.
