How Dogecoin (DOGE) Can Beat BTC in Performance This Year
Date: 2023-08-06 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The long-term outlook for the popular meme coin Dogecoin remains bullish for both DOGE/USDT and DOGE/BTC.
The price of Dogecoin has made a bullish breakout of an important long-term resistance area. However, this movement did not lead to a sharp increase as expected, and the price is currently trading near the levels that preceded the breakout. However, the long-term prospects for DOGE look optimistic.
Dogecoin breaks long-term 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 mere meme.
As the results of the technical analysis of the weekly chart show, after reaching an all-time high of $0.739 in May 2021, the DOGE rate moved along a descending resistance line. This decline brought the price to a low of $0.049 (green badge) in June 2022.
After that, Dogecoin entered a recovery phase. It started trading above the $0.060 horizontal support level. After several unsuccessful attempts that lasted for six months, on July 15, the DOGE price finally broke through the resistance line, which lasted an impressive 805 days on the chart.
Some have speculated that this growth may have been due to Elon Musk's recent rebranding of Twitter.
Breakouts of such long-term patterns often lead to a significant increase in price, as they signal the end of the previous trend. However, it is important to note that the expected growth has not happened yet.
The readings of the weekly Relative Strength Index (RSI) do not make it possible to draw a final conclusion. This momentum indicator slightly exceeded the 50 mark last week, but then continued to tread just above this area. Therefore, the further direction of the trend is still unclear.
A fall towards the $0.060 support area would mean a 20% decline in DOGE, while a continuation of the upward movement could see the price rise by 100% to $0.150.
DOGE rises against BTC
The weekly timeframe for the DOGE/BTC pair is also bullish for two main reasons.
First, the price has rebounded above the 230 satoshi area after having previously bounced below it (green circle). These rejections and retracements are important bullish moves that often result in significant price gains.
The significance of this movement is reinforced by the fact that at the time of the deviation, this area has been present on the chart for 900 days.
After that, the price of Dogecoin broke through the descending resistance line, also suggesting that the trend is bullish.
However, the RSI index does not yet confirm the bullish trend. Although the indicator is growing, it is still below the 50 mark.
If the price continues to rise, then the next resistance will come into play at 370 Satoshi, which is 45% above current levels.
Despite the bullish outlook, Dogecoin closing below the 230 Satoshi and $0.060 areas, respectively, would mean that the trend remains bearish.
