Dogecoin is up by 3 percent in today’s trading session. However, since the May 12 price spike that saw the crypto pierce through the $0.093 resistance level, the prices have not traded above that level again. Dogecoin has also traded sideways in the past six days, with bull and bear trends alternating in every preceding trading session.
Unlike 2021, when the global cryptocurrency market was in a bull market, 2022 has proven very difficult for the industry. The current bear market of the global cryptocurrency industry has meant that meme coins such as Dogecoin cannot post the gains we saw in 2021.
As a result, the Dogecoin price has dropped by 49 percent year to date. The crypto has also traded sideways since May 12, further complicating price recovery. In addition, the recent cryptocurrency market crash that resulted from Terra Luna and the UST collapse has also impacted Dogecoin prices.
The Dogecoin daily chart below shows that prices have trended sideways for the past six days. The chart also shows that prices have traded along the $0.081 support level during that time. Today’s trading session has also wiped yesterday’s losses and set a new five-day price high. Despite a 32% drop in May, Dogecoin has shown resilience this month, falling by only a percentage point.
Therefore, using the chart below, my Dogecoin price prediction expects the prices to continue going up. We are highly likely to see Dogecoin prices approach the $0.093 resistance level and possibly trade above it. It is also possible that, in the next few trading sessions, we will see the price of the Dogecoin trade above $0.1 again.
However, if the prices trade below the $0.080 price level, then my bullish price analysis will be invalidated. It will also signal a possible Dogecoin bearish move. A trade below the $0.080 price level will also be an indication that the bears are winning the markets.
This post was last modified on Jun 06, 2022, 12:43 BST 12:43