A prominent crypto analyst, known as Ali, has suggested a significant potential surge for Dogecoin (DOGE), speculating a possible rise of 6,780% if the cryptocurrency adheres to its current ascending parallel channel pattern. The prediction was shared via social media on December 30, emphasizing the optimistic outlook for DOGE, provided it maintains its present trajectory.
At the moment, Dogecoin is trading at $0.3215. Earlier this year, it experienced a peak exceeding $0.50 before retracing to its current levels. The price is now moving within a range where $0.30 serves as a crucial support, while $0.35 to $0.40 marks strong resistance areas. These points are aligned with historical Fair Value Gaps, indicating regions of unfilled liquidity and potential price retracements.
Technical analysis of DOGE reveals a daily candlestick chart highlighting recent price consolidation around $0.32, with identified fair value gaps suggesting zones for potential retracement. Key resistance is observed near $0.35 to $0.40, whereas support levels lie between $0.25 and $0.28. The recent rejection at the $0.45 resistance suggests prevailing selling pressure at higher levels.
Moreover, the Moving Average Convergence Divergence (MACD) indicators reveal a bearish crossover, with the MACD line falling below the signal line. This indicates declining bullish momentum and increased selling pressure, especially post the November price drop. The sustained selling momentum is reflected in the MACD histogram through prolonged red bars.
Dogecoin’s market sentiment remains mixed, partly due to general macroeconomic conditions and the broader cryptocurrency market dynamics. While DOGE continues to enjoy support from its dedicated community, speculative trading, as evidenced by open interest data, poses risks to its price stability during periods of decreased market activity. For DOGE to reclaim its bullish momentum and advance upward, it must overcome the key resistance levels and address liquidity gaps currently below the market price.
