Dogecoin (DOGE) Unable to Keep Pace with Bitcoin (BTC) in Price Surge
The trend for Dogecoin (DOGE) against the US Dollar is unclear, but it is clearly bearish against Bitcoin (BTC). Various readings suggest that the trend is moving downwards, and a strong bounce is needed to invalidate this bearish outlook.
On the weekly time frame, the DOGE price fell below a descending resistance line after reaching its highest price of $0.739 in May 2021. It then dropped to a low of $0.049 in June 2022. The price has since recovered, trading above the $0.060 support level. However, it has not yet surpassed the long-term descending resistance line that has been in place for 798 days. Currently, the price is close to the convergence of the support level and the resistance line, indicating an imminent significant movement.
The weekly Relative Strength Index (RSI) reading does not provide clear conclusions. The RSI is rising but remains below 50, indicating an uncertain trend. For a bullish trend to be confirmed, the RSI would need to rise above 50 and DOGE would need to break out from the descending resistance line.
In contrast to the uncertain DOGE/USDT chart, the Dogecoin price is losing ground against Bitcoin. The weekly chart shows that the DOGE/BTC price has closed below the ₿0.0000023 support area, which has acted as both resistance and support since the beginning of 2021. This close below the support area indicates a bearish trend. The RSI has also fallen below 50 and has been downward since the beginning of the year, further supporting the bearish possibility. If the decrease continues, the next support area will be at ₿0.0000010.
Despite this bearish outlook, a movement above the ₿0.0000023 area would invalidate the bearish breakout and accelerate the rate of increase to ₿0.0000040.
This analysis should only be considered as informational and not as financial advice. It is important to conduct your own research and consult with professionals before making any financial decisions.