The price action for Dogecoin shows movement out of the bullish trend that has enveloped DOGE for a considerable period, with the meme token currently unable to reclaim a vital price swing zone.
Dogecoin has been consistently declining since attaining its all-time high of $0.73 in May last year. The following month of the same year saw the price bounce to $0.165 at the horizontal support zone.
However, the price bounce was not strong enough to maintain the tempo, which ultimately forced the price to break down in the first week of January.
The subsequent price action of the popular meme token reached a low point at $0.107 in February. Despite Dogecoin’s inability to move further, it has traded below the $0.165 mark, which is now the expected resistance zone.
Consequently, the value of the DOGE is currently at 80%, far from regaining its all-time high.
Potential DOGE Breakout
According to a tweet on DOGE’s performance posted by a crypto trader @CryptoNTez, Dogecoin is in for a potential price breakout.
A cursory look at the daily timeframe from the chart indicates that Dogecoin is, in fact, out of the descending resistance line that has been a part of its price journey since last October.
As per the chart, the price of the meme coin broke out on March 18, which then moved to attain a high of $0.179 on April 5.
The breakout was followed by bullish attempts to make a solid comeback, and such bullish actions are observed more often after a previous bullish trend reversal.
Meanwhile, amid the increase, Dogecoin could not even come close to the 0.382 Fibonacci retracement zone considering the entire movement measurement. As such, the price breakout turns out to be too weak for a further uptrend.
Analysis of the DOGE Wave Counts
Beginning from the all-time high, Dogecoin appears to have undergone a successful A-B-C corrective process. Waves A: C has a 1:0.382, which is considered a common occurrence in such a sequence.
Wave C turned into an ending shape in the form of a diagonal line, where structures like this are usually retraced as soon as they occur.
Should the above wave analysis be correct, it implies that the value of the DOGE has been in a long-term correction, and once complete, the price of Dogecoin will begin a substantial uptrend in the coming days.
Going by the price analysis for the leading meme token, the current situation appears more bearish than expected, with further actions required for a swift turn of events.
However, given the general nature of the meme coin, regarding price volatility due to speculation and having no definite structure to alter any unfriendly price direction, its future performance is down to how the entire market performs.
Unlike others, Dogecoin does not have the means to steady its price action and shield it from market corrections because its price is too prone to irregular rises and falls and defies most predictions.