Dogecoin Retests Resistance After Breakout
The Dogecoin (DOGE) price recently experienced a bounce, confirming a descending resistance trend line that it had previously broken out from. However, DOGE is still trading within a long-term corrective pattern and is attempting to break out.
On the weekly time frame, the DOGE price has been increasing since October 2023. In November, it broke out from a descending resistance trend line that had been in place for 400 days. The price reached a new yearly high of $0.107 in December but has since fallen, creating four bearish weekly candlesticks.
This week’s bounce validates a horizontal resistance area and the descending trend line.
DOGE Price Prediction: Will Price Begin a Bullish Trend Reversal?
Unlike the weekly time frame, the daily chart indicates a bearish trend for DOGE. The price failed to gain support above its resistance trend line after breaking out from an ascending parallel channel. Currently, the price is trading just below the channel’s resistance trend line.
The RSI on the daily chart is attempting to move above the 50-trend line but faces resistance. Whether DOGE breaks out from the channel or gets rejected will determine its future trend direction.
A breakout from the channel could trigger a 40% increase to the next resistance at $0.115, while a rejection could cause a 28% drop to the support trend line at $0.062.
Hot Take: The Future of Dogecoin
As Dogecoin continues to retest resistance levels after its breakout, its future remains uncertain. The recent bounce and validation of key levels indicate potential bullish momentum, but it is important to monitor whether DOGE can sustain its upward movement. The RSI breakout above 50 will be a significant indicator of bullish strength.
Ultimately, whether DOGE can break out from the channel and overcome resistance or faces rejection will determine its next major price movement. Traders and investors should closely analyze these levels to make informed decisions about their DOGE holdings.
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