The Dogecoin (DOGE) price has been decreasing since reaching its all-time high but bounced sharply on April 23.
Dogecoin is expected to continue increasing and eventually reach a new all-time high price.
DOGE drops after all-time high
Between April 15-16, DOGE increased by slightly more than 250%, leading to an all-time high price of $0.45 on April 16. However, the price dropped sharply afterwards.
The decrease continued until April 23, culminating in a local low of $0.169. Following this, DOGE created a hammer candlestick with a very long lower wick—a strong sign of buying pressure. Since then, the price has been moving upwards.
Technical indicators are still bullish. The MACD and RSI are increasing. While the Stochastic oscillator is neutral, it has yet to make a bearish cross.
Wave count
Cryptocurrency trader @Altstreetbet outlined a DOGE chart, stating that the next wave is likely to take the token to a new all-time high price above $0.55.
The wave count does indeed show a completed A-B-C structure. If correct, DOGE will begin an impulsive upward movement afterwards.
If we use an external Fib retracement on the entire decrease, the closest resistance area would be found at $0.621.
A decrease below the April 24 low of $0.222 (red line) would invalidate this particular wave count.
DOGE/BTC
The movement for DOGE/BTC looks similar to its USD counterpart, with the only distinction being that the correction was an irregular flat.
If the pair continues increasing, the next resistance would likely be found at 982 satoshis. This target is found using the 1.61 external Fib retracement of the most recent downward movement.
Conclusion
DOGE has likely begun a new bullish impulse and could increase toward a new all-time high price. This seems to be the case for both the BTC and USD pairs.
For BeInCrypto’s previous bitcoin (BTC) analysis, click here.
Disclaimer
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