The price of Dogecoin recently reached its annual maximum, but after that there was a significant decline. Let's see if DOGE has a chance to recover.

Despite the decline, the DOGE still remains above the important support level, which gives hope to the bulls.

On the weekly chart, you can see that since reaching a historic high in May 2021, DOGE has been moving along a downward resistance line. During this period, DOGE tried unsuccessfully to cross this line several times, but in October 2023 he finally managed to do so.

Despite this breakthrough, the price has still not reached the main horizontal resistance zone.

On the weekly chart, the relative strength indicator (RSI) is growing and is above the 50 level, which indicates positive prospects. In addition, the RSI has just entered the overbought zone.

Traders use the RSI to determine whether the market is overbought or oversold and decide whether to buy or sell assets. If the RSI value exceeds 50 and the trend is upward, it is usually beneficial for bulls. If the RSI is below 50 and declining, this may indicate that the bears are in control of the market.

DOGE price forecast: development or correction

On the daily chart, the Dogecoin price has successfully overcome the horizontal resistance zone of $0.095. This breakthrough accelerated DOGE and allowed it to reach a new annual maximum of $0.107 (the previous annual maximum was set on December 6 at $0.105).

However, the DOGE price eventually formed a bearish candle by the end of the day. The token is currently trading near the $0.095 support level.

On the daily chart, the relative strength indicator (RSI) does not provide clear signals. On the one hand, the RSI bounced off the bearish divergence trend line. On the other hand, it has left the overbought zone and is in a state of decline.

Given this mixed picture, DOGE's future trend will depend on whether it manages to stay above the $0.095 level or the price drops lower. A successful strengthening will create the prerequisites for growth to the next resistance level of $0.145, which is 50% higher than the current price. Otherwise, the price may decrease by 25% to the nearest target of $0.072.