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

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.

$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

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