The Dogecoin Price Breaks Out From 900-Day Resistance Trend Line
If you look at the weekly time frame technical analysis, you’ll see that the Dogecoin price broke out from a descending resistance trend line in October. This trend line had been in place for 900 days, leading to three significant rejections before the breakout. After breaking out, DOGE reached a high of $0.082 before falling slightly.
After the breakout, the weekly Relative Strength Index (RSI) moved above 50. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. A movement above 50 is a positive sign.
DOGE Price Prediction: Start of a Reversal?
Even though the weekly time frame looks bullish, the daily one casts doubt on whether the upward movement will continue in the short term. The main reason for this is the daily RSI, which has generated a bearish divergence during the most recent highs. Additionally, the altcoin has created successive long upper wicks, considered signs of selling pressure.
If DOGE surpasses the November peak of $0.082, it will indicate the conclusion of the correction and a potential 24% rise toward the subsequent resistance level at $0.100.
Hot Take
The Dogecoin price has broken out from long-term resistance but faces uncertainty in its short-term movement due to bearish signals on the daily chart.
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