Dogecoin (DOGE) price saved a dip by creating a bullish candlestick on Jan. 31. The upward movement could continue towards $0.115.
Technical analysis on the weekly time frame shows that Dogecoin price is trading below its main resistance at $0.115. The area had previously provided support, but the DOGE price crashed in May 2022.
The area then turned into resistance in October. If the DOGE price were to break out, the next resistance would be at a price average of $0.175.
While the weekly RSI is rising, it is barely above 50 and has yet to generate any bullish divergence. Therefore, more is needed to predict that the bullish move will continue.
On the other hand, if the price of the meme cryptocurrency were to crash from its long-term ascending support line at $0.080, it could start a move lower towards $0.050.
Dogecoin Price Recovers Crucial Resistance
The daily chart provides a more decisive positive outlook for Dogecoin, mainly due to the bullish candlestick on Jan 31, which triggered a break from the 0.618 Fibonacci retracement resistance level.
The rise above the 0.618 Fibonacci retracement resistance level was important not only for price action, but because it invalidated a bearish divergence that had been unfolding on the daily RSI.
Therefore, the rise is expected to continue towards $0.115.
Wave count supports rise
Finally, the wave counts support a continuation of the bullish move, although a short-term drop could occur initially.
It appears that the DOGE price is in wave two of a five wave (white) up move, which could be completed within the next 24 hours. The sub-wave count is given in black.
Due to the considerable overlap in the upward move from January 25 to now, which led to the price high of $0.097, the move is likely to be part of sub-wave B.
Therefore, the bullish move is expected to continue after a short-term decline that completes sub-wave C. Since wave three would follow, the up move could further accelerate towards at least $0.115 and possibly $0.175.
On the other hand, a decisive close below the low of sub-wave four (red line) at $0.077 would invalidate this count as it would also cause a breakout of the long-term ascending support line. So, the Dogecoin price could fall below $0.050.
To conclude, the most likely Dogecoin price forecast suggests that the DOGE price will reach at least the $0.115 resistance area. However, a close below $0.077 would invalidate this bullish price analysis and could send DOGE towards $0.050.
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