This Level Will Confirm the Price Trend of Dogecoin (DOGE)
The Dogecoin (DOGE) price is currently trading between important levels of resistance and support, and whether it breaks out or down will determine the future trend. Both the weekly and daily time frames are inconclusive in predicting the next move of the price.
On the weekly chart, DOGE has dropped below a descending resistance line after reaching its all-time high in May 2021. It has since rebounded and is trading above the $0.060 horizontal support area. However, it has not been able to break out of the long-term descending resistance line, which has been in place for 798 days. The recent rejection by the resistance line suggests that a decisive movement is imminent.
The weekly Relative Strength Index (RSI) reading is inconclusive as well. The RSI is currently increasing but remains below 50, indicating an uncertain trend. A move above 50 along with a breakout from the resistance line would confirm a bullish trend.
On the daily chart, the outlook for DOGE is more positive. The price has deviated below the $0.065 horizontal level and subsequently recovered, which often leads to significant price increases. DOGE has also broken out from a descending resistance line and is trading slightly above the $0.065 support area. A move above the 0.382 Fibonacci retracement resistance level at $0.073 would strongly suggest a bullish trend.
The daily RSI also supports the breakout and upward movement, as it has broken out from a descending resistance line. However, it has fallen slightly below 50, which casts some doubt on the validity of the breakout.
If the DOGE price successfully breaks out, the next resistance level will be at $0.086, represented by the 0.618 Fibonacci retracement resistance level.
It is important to note that if the price fails to break out above the $0.073 region, there could be another test of the $0.065 support level and potentially the long-term $0.060 support level. As long as the price remains above the $0.060 support level, the long-term trend remains bullish.
Please note that this analysis is for informational purposes only and should not be considered as financial or investment advice. Always conduct your own research and consult with a professional before making any financial decisions.
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