Analyst Says New Dogecoin All-Time High Possible, “Don’t Be Fooled by the News”

An analyst highlights a bullish divergence on Dogecoin, suggesting that traders should focus on the numbers rather than the news.

Dogecoin (DOGE) continues to face a challenging period, with its price stagnating. Over the past week, Dogecoin has experienced a significant decline of 15.30%, with the current price standing at $0.1715.

While these figures reflect recent struggles, analysts have identified key technical indicators that suggest potential future gains.

In a recent post on TradingView, one analyst highlighted a bullish divergence on Dogecoin’s 3-month chart. The chart shows the price has been making higher lows, indicating an upward trend.

Meanwhile, the RSI, a momentum indicator, is trending lower. This discrepancy creates a “bullish divergence,” which often signals a potential reversal or rally.

Dogecoin Bullish Indicators | TradingView

“Don’t be Fooled by The News”

While the analyst refrained from providing a specific price target, he emphasized the likelihood of Dogecoin reaching new highs in the future. In particular, he urged Dogecoin enthusiasts to ignore negative news causing temporary fluctuations and maintain a bullish perspective.

“New all-time highs [likely for Dogecoin]—don’t be fooled by the news,” he wrote.

Notably, a few days ago, Elon Musk, head of the U.S. Department of Government Efficiency, denied the possibility of using Dogecoin in the federal government. Musk’s words contributed to a drop in Dogecoin’s price to trade below $0.17, although it has recovered slightly.

Testing Key Resistance Levels

Elsewhere, another trader, Raj Kumar, analyzed the current market situation, focusing on key support and resistance levels. He shared a chart showing that Dogecoin’s price has surpassed a critical resistance level of around $0.17236.

This level has acted as a barrier to upward movement, with previous seller pressure limiting the price from breaking through. The trader points out that this breakout could pave the way for further gains.

Dogecoin Prediction | TradingView

Support Zones Indicate Possible Rally

These predictions follow similar commentaties by MMBTtrader, which outlined important support zones for Dogecoin. After breaking past a resistance level, the analyst noted that a retest of the current price zone could be necessary before any major rally can take place.

The key support zones identified include $0.13548 and $0.09024. If Dogecoin stabilizes at these levels, it could potentially lead to a surge, with the trader predicting a rise to the $0.30-$0.40 range.

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