Dogecoin Price Struggles to Maintain Increase
The DOGE price has broken out from a long-term descending resistance line. However, the failure to initiate a significant price surge after the breakout is a worrisome sign for the future price outlook. Additionally, the short-term movement is inconclusive. So, it is still possible that the breakout was illegitimate.
Key Points:
- The DOGE price had fallen under a descending resistance line since its all-time high price of $0.739 in May 2021.
- On July 15, 2023, DOGE finally broke out from the resistance line after 805 days.
- The price has hovered close to its breakout level since, failing to show a significant price surge.
- An increase to the next resistance at $0.150 will amount to an upward movement of 100%, while a drop to the $0.060 support area will decrease by 20%.
- The examination of the weekly Relative Strength Index (RSI) reading does not produce a definite result, indicating a neutral trend.
DOGE Price Prediction: Breakout or Breakdown?
The daily timeframe technical analysis offers mixed signs for the DOGE price. While it broke out from a descending resistance line, it is also in the process of breaking down from an ascending parallel channel pattern. The trend is bearish, and if it continues, the price could fall by 25% to reach the June low. However, a breakout from the channel could lead to a long-term increase of 100% and reach the next resistance at $0.150.
Hot Take:
The DOGE price breakout from the long-term descending resistance line did not result in a significant price surge, raising concerns about the future price outlook. The short-term movement remains inconclusive, leaving the possibility that the breakout was illegitimate. Technical analysis indicates a neutral trend and mixed signals on both the weekly and daily timeframes. The bearish trend suggests a potential breakdown, but a breakout from the channel could lead to a long-term increase. Ultimately, the future direction of DOGE price remains uncertain.
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