The Dogecoin (DOGE) price aims to take the 2-year barrier
Date: 2023-07-06 Author: Karina Ziganova Categories: IN WORLD
The price of Dogecoin (DOGE) has set its sights on the 791-day resistance, although the token's long-term prospects are still in question
Dogecoin (DOGE) bounced back on shorter timeframes, causing the diagonal resistance to break. However, there are still notable concerns in the market regarding the long-term prospects of the coin.
The DOGE price is trying to break through the important Fibonacci resistance level. Such a breakout would confirm the beginning of a bullish reversal, promising new highs.
Dogecoin consolidates under 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 simple meme.
As the results of the technical analysis of the weekly chart show, the price of DOGE has been declining below the downward resistance line since reaching an all-time high of $0.739 in May 2021. The drop culminated in a low of $0.049 recorded in June 2022.
After that, the price of DOGE rebounded and has been trading above the horizontal area of $0.060 ever since. However, it never broke through the line of long-term downward resistance. This line has been present on the chart for 791 days.
The weekly RSI gives uncertain signals. This index is rising, but still below the 50 level, indicating that there is no clearly directed trend. A breakout above 50 is needed to confirm the bullish trend, combined with a bullish breakout by the price of DOGE of the downward resistance line.
DOGE recovers from a false bearish breakout
Technical analysis of Dogecoin on the daily timeframe outlines a bullish picture. The main reason for this is the price deviation (green circle) below the horizontal area of $0.065 and the subsequent recovery above this level. Such moves are often followed by a sharp increase, as they indicate that buyers have gained the upper hand after a failed attempt by sellers to make a bearish breakout.
After that, the DOGE price broke through the 79-day downward resistance line. This further confirms the likelihood that price has started a bullish reversal. DOGE is now trading just below the 0.382 Fibo resistance level of the retracement at $0.073 as the first attempt at a bullish breakout was unsuccessful (red icon).
A breakout of the Fibo level of 0.382 will indicate that the trend has become bullish. In this case, the next resistance will come into play at $0.086 (Fibo level 0.618 retracement).
The daily RSI supports the thesis of a bullish breakout and a continuation of the upward movement. This indicator has made a bullish breakout of the downward resistance line (green line) and is now above 50. Both of these signals are considered signs of a bullish trend.
Despite this bullish outlook, the market's failure to break through the $0.073 area could lead to a retest of the horizontal support at $0.065 and possibly the longer-term $0.060 level.
However, as long as this last level remains unbroken, the long-term bullish trend in DOGE will continue.
