Cryptoanalysis: This is what DOGE has to go through to keep rising

Like almost all cryptocurrencies, DOGE has performed very well over the past month. Memecoin has found support at a key price level and is looking to move higher from here. In this analysis we look at the most important price levels. Let’s look at the graphs.

The big picture

We start this analysis with the weekly chart. Here each candle represents 7 days and we see a large important zone that often led to price changes. We also see two red lines, but we’ll get to that in a moment.

The gray area is around the $0.58 price. This happened two years ago due to disagreements between buyers and sellers. Buyers continued to buy higher, while buyers continued to sell lower.

This creates a pattern that resembles a kind of triangle, followed by a strong upward movement. Because this move was so sharp, many buy orders remained at this price. When the coin returns here, places like this often see small jumps, and this was also the case with DOGE.

Every time the price returned to this zone, there were enough buyers to push DOGE higher, and this happened many times. The last time was on October 19 and since then the price has clearly been on an upward trend.

Two red resistors

Dogecoin seems to want to surpass the previous record. This is less visible on the weekly chart, so we also look at the daily chart. Here each candle represents 24 hours.

It would be positive if the price makes a higher high above the red line at $0.0838. This breaks the downtrend (with lower highs and lower lows). This will be necessary to achieve the next increase, otherwise there is still a possibility that DOGE will return to the gray zone.

However, if DOGE continues to rise, the top red line (first chart) is a good next target in the long term. As you can see, this level has also caused price changes in the past. But first let’s hope that the coin rises above $0.0838, otherwise this scenario remains very far away.