Dogecoin (DOGE) is at a major crossroads, testing key resistance as crypto analysts look to determine where the meme-based token is headed next. The cryptocurrency, presently near $0.20 at Friday’s close, faces immediate challenges while longer-term projections spark debate about its future value.
Dogecoin is testing the rails from the top, a sign that it’s trying to break through nearby resistance. Nonetheless, it is still capped under the Tenkan resistance line so there is a risk any move higher meets plenty of hurdles. The latest analysis now suggests Dogecoin could end the week at 20 cents.
Dogecoin currently hovers within the high end of a three-year ascending channel. Ever since that capitulation in June 2022, the bottom rail has been there to catch us. Since mid-2022, internal rails (shown at 0.236 and 0.382) have repeatedly limited bounce attempts. For Dogecoin, the 0.5 retracement line – corresponding to a price of $0.19049 – sits directly at its current price level. The 0.5 diagonal acts as an inflection point just under the present spot price.
In spite of these struggles, other analysts and advocates are looking towards history for signs of future boom. According to the fibs in previous bull cycles, Dogecoin made it up to the 1.618 extension. Following a logarithmic Fibonacci roadmap for its fourth bull cycle, Dogecoin is set up to make a run toward a target of $23.
These Fibonacci extensions project intermediate targets of 1.272 at $1.54518, 1.414 at $2.27089 and 1.618 at $3.94842. Our most bullish super-cycle Dogecoin prediction comes in at 2.0 ($11.12397). The most ambitious target of $23.25744 is the one that’s met with the most skepticism. Traders emphasize it as "purely imaginative unless there is unprecedented liquidity flow."
"I don’t think it will reach $23 in this cycle." - Cantonese Cat
Dogecoin has a tough task if it is to break resistance for a third time. To maintain any upward movement worthy of note, buying pressure is objectively necessary. If Dogecoin can clear these hurdles and see its most bullish predictions come true is anyone’s guess.
Dogecoin may struggle again to break resistance later, highlighting the need for increased buying pressure to sustain any significant upward movement. Whether Dogecoin can overcome these hurdles and reach the ambitious targets remains to be seen.
