Price Analysis

3 Reasons Why Dogecoin May Offer Great Returns In 2023; Buy Now?

The weekly technical chart shows three reasons why investing in Dogecoin could be a profitable investment of 2023
Published by
3 Reasons Why Dogecoin May Offer Great Returns In 2023; Buy Now?

Amid the ongoing selling pressure in the crypto market, the dogecoin price shows a substantial breakdown from the monthly support of $0.073-$0.071. Losing this crucial support, the selling pressure will intensify, and prices are poised for further downfall. However, here are three reasons why entering this discount opportunity can boost your portfolio in 2023. 

Source- Tradingview

Advertisement

Descending Trendline Provides Entry Opportunity 

The Dogecoin price initiated a new correction phase when it turned down from the $0.15 resistance. The two months downfall breached multiple support but strictly followed a descending resistance trendline.

The coin price has retested this dynamic resistance multiple times, indicating the sellers are using this to maintain ongoing downfall. On a contrary note, a bullish breakout from this resistance will signal the selling on rallies is shifting to buying on dips.

In ideal bullish conditions, the Dogecoin price could rise 115% higher to hit the $0.15 mark.

Advertisement

$0.56 Stands As A High Accumulation Zone

From June to October 2022, the Dogecoin price retested the $0.056 numerous times. The multiple lower price rejection candle at this support indicated the buyers are aggressively defending and also initiated the October end rally.

Furthermore, under the influence of the aforementioned resistance, this memecoin may prolong the ongoing downfall and revisit the $0.056 support. If the buyers manage to sustain above this support, the coin price will likely trigger another recovery rally.

Also read: Breaking: Dogecoin Foundation Announces Development Fund, DOGE Price Jumps

Advertisement

Rising RSI Indicator

The Relative Strenght index(RSI) determines the strength of the ongoing trend by calculating the speed and magnitude of current price action. Thus, considering the coin price is revisiting, the weekly RSI chart shows evident growth, indicating buying pressure is growing at this support.

Thus, a positive divergence between price action and indicator bolsters a higher possibility of price reversal. 

Current Price Action

On December 28th, the DOGE price has a bearish breakdown from a monthly support zone of $0.073-$0.071. This breakdown intensifies the prevailing selling pressure and may prolong the existing downtrend.

With sustained selling, the coin price may plunge 20% down to hit the $0.056 mark.

  • Resistance Levels: $0.093 and $0.09
  • Support Levels: $0.066 and $0.056
Advertisement

Share
Brian Bollinger

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Price Analysis

Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?

Bitcoin price continues to trade within a defined consolidation range as the broader crypto market…

October 8, 2025
  • Price Analysis

Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B

Solana price pulled back today, Oct. 8, mirroring the performance of the broader crypto market,…

October 8, 2025
  • Price Analysis

XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip

The XRP price continues to draw attention as market analyst, Ali Charts, warns of a…

October 8, 2025
  • Price Analysis

Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?

The BNB Coin price continues to extend its upward trajectory, reflecting consistent market strength and…

October 8, 2025
  • Price Analysis

ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?

The ASTER price has slipped by 2.37% over the past 24 hours, while the HYPE…

October 7, 2025
  • Price Analysis

Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone

Ethereum price could be on the verge of a strong bullish breakout in the coming…

October 7, 2025