As we get closer to 2020 year-end, what does the Dogecoin price prediction look like? We take a look at historical price action and outline key support and resistance levels to keep on watch. Dogecoin is the 49th largest digital asset by market cap. At the time of this report, Dogecoin is currently trading at $0.00341 with a total market capitalization of $430,247,732.
Dogecoin, the 49th largest cryptocurrency by market cap, has grown ~ 45 % over the last year. At the time of this analysis, DOGE is currently trading around $0.00341. Despite the digital asset being created in 2013 as a “joke,” many traders still trade the asset due to solid volatility and liquidity. DOGE has rallied ~ 32% over the last month, which is in line with Bitcoins ~ 38% growth. With only one month remaining in 2020, what key support and resistance levels will traders be watching going into the new year?
Dogecoin Price Prediction ( Technical Analysis )
By assessing the one year chart, Dogecoin has built solid support in the $.00353 region. As of recent, the cryptocurrency has rejected this level which is giving off bearish sentiment. We have outlined this level in the chart below.
As we can quickly see, DOGE has experienced strong selling pressure after price peaks in late November. The digital asset has had a difficult time reversing sentiment and continues to reject key support levels. With this being said, many traders right now are eyeing the $.00301 support levels. With the current price action, it seems highly likely that Dogecoin could test that support. If it was to do so, it would represent a ~ 12% drawdown from current levels.
On the contrary, if DOGE can surge back above $.00353 levels, it should incur bullish momentum. Many traders appear to be placing buy orders above that region to potentially catch the next leg up. If $.00353 can be accepted, DOGE could rally to $.00394 resistance. In the event this happens, it would represent ~ 11% upside.
Price Action Remains Bearish
Despite traders/investors hoping for a reverse in sentiment, the momentum is still bearish. We measure momentum by looking at ROC ( rate of change ). This indicator is applied to the bottom of the chart. When ROC rises above 0.00, this denotes bullish momentum. On the flip side, if ROC drops below 0.00, this denotes bearish momentum. We can see from the chart that DOGE recently dropped below the 0.00 threshold and maintains bearish momentum. If DOGE changes sentiment in the short-term, look for this indicator to correct itself before anything else.
This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. This article was sourced by Visionary Financial