Dogecoin Prediction: How High Can DOGE Go in July?

Dogecoin (DOGE) price has exhibited sideways movement following a significant decline from its recent high near $0.25. Traders are keenly observing for definitive breakout signals. Analysis of the daily chart and the Relative Strength Index (RSI) hints at a potential accumulation phase, which could precipitate either an upward or downward trend. Let's examine the chart details and project the possible future trajectory of DOGE's price.

Dogecoin Price Prediction: Is DOGE Establishing a Bottom?

DOGE/USD Daily Chart - TradingView

As of the latest observation, DOGE's price is hovering around $0.1637, reflecting a 1.82% decrease for the day. The Heikin Ashi candles indicate diminishing selling pressure in recent sessions, characterized by smaller candle bodies and more frequent doji-like formations. This suggests that sellers may be losing momentum after the prolonged downtrend that began in mid-May.

Notably, the $0.1623 level is acting as immediate support. Dogecoin's price has repeatedly tested this level without closing decisively below it, potentially forming a base for a reversal if buyers re-enter the market.

What Does the RSI Indicate?

The Relative Strength Index (RSI 14) currently stands at 40.43, slightly above its recent low of approximately 35.43. While still below the neutral 50 mark, suggesting ongoing mild bearish momentum, the RSI has shown an upward trend in recent days. Historically, Dogecoin's price has often rallied when the daily RSI rebounds from the 35–40 range.

A sustained RSI climb above 50 could signal a renewed bullish sentiment. Traders will be closely monitoring volume in conjunction with any emerging green candles to confirm this shift.

Key Price Levels to Monitor

Analyzing the daily chart, if DOGE's price maintains its position above the $0.1623 support, the immediate resistance lies near $0.17. A successful breach of this level could lead to a test of the next resistance cluster around $0.20, a significant psychological barrier and the level from which the previous decline originated.

Estimating potential upside, a break above $0.17 followed by a rally to retest $0.20 would represent an approximate 18% increase.

A breakout above $0.20 could pave the way towards $0.23–$0.25, aligning with the last local peak. Conversely, a breach below the $0.1623 support could lead to a test of the next major support around $0.13, implying a potential downside risk of about 20%.

Dogecoin Price Prediction: Concluding Thoughts

Dogecoin's price appears to be consolidating at a crucial support level, with early RSI recovery signs suggesting a potential end to the selling pressure. However, a confirmed short-term trend reversal hinges on buyers pushing DOGE's price above $0.17.

Given improved market sentiment and Bitcoin's stability, a 15%–20% upside towards $0.20–$0.23 remains plausible within the month. Conversely, failure to defend $0.1623 could trigger a further decline to $0.13, erasing recent gains.

Currently, monitoring the daily close and RSI trend is crucial. The ongoing battle between bulls and bears within this narrow range will likely determine DOGE's direction in the near term.