Dogecoin Breaks Out From 900-Day Resistance
The Dogecoin (DOGE) price has finally broken out from a long-term descending resistance trendline that had been in place since its all-time high. Despite previous unsuccessful attempts, the price started an upward movement four days later.
Weekly Technical Analysis
On the weekly timeframe, the DOGE price had been trading below a descending resistance trendline since reaching its all-time high of $0.740 in May 2021. The price dropped to a low of $0.049 in June 2022 but failed to break out from the trendline despite several attempts.
Last week, however, the DOGE price broke out from the 900-day resistance and closed above the trendline at $0.069, marking the first close above it since the all-time high.
What Do the Analysts Say?
Cryptocurrency analysts are leaning bullish on Dogecoin’s future prospects. ZAYKChart believes that DOGE is ready for a massive bullish wave, while Rovercvc states that DOGE will outperform Bitcoin due to strong support on the DOGE/BTC chart.
However, rektcapital is not as confident about the bullish outlook, as he sees a less steep slope that DOGE has yet to break out from.
DOGE Price Prediction: Is This the Start of a Reversal?
On the daily timeframe, technical analysis also supports a bullish outlook for DOGE. The price recently broke out from a shorter-term descending resistance trendline and reclaimed a horizontal support level at $0.060.
The daily RSI is also bullish, with readings above 50 indicating a bullish trend. However, the DOGE price was rejected at the 0.618 Fibonacci retracement resistance level, and a close below the minor support at $0.066 could lead to a 13% drop.
Hot Take: Dogecoin’s Breakout Signals Potential Reversal
The breakout from the long-term descending resistance trendline is a significant development for Dogecoin. It suggests that the bearish trend may be coming to an end, and a reversal could be on the horizon.
However, analysts have differing opinions on the future direction of DOGE. While some are optimistic about a massive bullish wave and outperformance against Bitcoin, others are more cautious and highlight the need for further confirmation of the bullish trend reversal.
As always, it’s important to carefully consider different perspectives and conduct your own research before making any investment decisions.
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