Possible Long-Term Rally on the Horizon as Dogecoin (DOGE) Experiences Price Breakout
Dogecoin (DOGE) is seeing a rebound in price on shorter timeframes, potentially indicating a bullish trend. However, there are still concerns about its long-term prospects.
On the weekly timeframe, the DOGE price has been under a descending resistance line since its all-time high in May 2021. It reached a low in June 2022 but bounced back and has been trading above the $0.060 horizontal area. However, it has not yet broken out from the long-term resistance line, which has been in place for 791 days. The weekly RSI, which assesses momentum, is currently undetermined.
On the daily timeframe, the DOGE price has shown a bullish outlook. After a deviation below the $0.065 horizontal area and subsequent reclaim, the price broke out from a descending resistance line. It is now trading just below the 0.382 Fib retracement resistance level at $0.073. A movement above this level would suggest a bullish trend. The daily RSI also supports the bullish trend, as it broke out from a descending resistance line and is currently above 50.
If DOGE successfully breaks out, the next resistance level will be at $0.086, created by the 0.618 Fib retracement resistance level. However, if it fails to break out from the $0.073 region, it could retest the $0.065 horizontal support area.
Overall, while there is potential for a bullish reversal in the short term, it is important to monitor whether DOGE can break out from key resistance levels. If it can maintain above the $0.060 support area, the long-term trend remains bullish.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.