Dogecoin (DOGE) has broken through a key long-term resistance. What's next
Date: 2023-07-24 Author: Karina Ziganova Categories: BLOCKCHAIN
Dogecoin (DOGE) has finally broken through the long-term diagonal resistance area, but has not yet started the growth that usually follows such long-term breakouts
In any case, the signals on the weekly and daily timeframes support continued growth, reinforcing the fact of a long-term breakout of DOGE.
Dogecoin breaks through 805-day resistance
The coin of the Dogecoin project is one of the most recognizable "calling cards" of the crypto market and has many fans. Although it appeared in 2013 as a meme coin, many already believe that DOGE has outgrown the status of a simple meme.
As the results of the technical analysis of the weekly chart show, in May 2021, the DOGE rate reached a peak value of $0.739 and has since moved along the descending resistance line. As a result, the market marked a low of $0.049 in June 2022.
After that, the token triggered a recovery (green icon) and began trading above the horizontal support level of $0.060. After numerous failed attempts over the course of six months, DOGE finally broke through this resistance line last week.
By the time of the bullish breakout, the age of this line was 805 days. Breakouts of such long-term structures usually lead to a pronounced price increase and indicate the end of the previous trend.
However, the price increase has not yet begun.
The weekly Relative Strength Index (RSI) does not allow us to draw an unambiguous conclusion. Although this momentum indicator is rising, it still remains below the 50 mark, indicating an undecided trend. To confirm the bullish trend, it is necessary for the RSI to rise above 50.
DOGE Forecast: Will Growth Continue
Technical analysis of the shorter daily timeframe shows a predominantly bullish mood.
On June 22, the DOGE price broke through the descending resistance line. Then she turned it into support and began to move upwards.
After several unsuccessful attempts, the coin finally overcame the Fibo level of the 0.382 correction at $0.075. However, the daily close above this level has not yet occurred. This event is necessary to confirm the bullish trend, and it may lead to an increase in price in the direction of the 0.618 Fibo resistance level of the correction at $0.085.
However, if DOGE fails to close above the 0.382 Fibo level, then we are likely to see a fall to the horizontal support area of $0.065.
The long-term outlook for DOGE is bullish as the price has broken through the 805-day resistance line. Despite the fact that it failed to start a meaningful increase, the trend will be considered bullish until the token closes below this resistance line. In this case, the bullish scenario will be canceled.
