Bulls rally as DOGE price breaks from 900-day resistance
Dogecoin (DOGE) price has moved above the long-term downtrend resistance line that has been in place since the all-time high.
Despite the deterioration, the price did not decrease significantly. On the contrary, after four days it started an upward movement.
Dogecoin broke the 900-day resistance
The weekly time frame technical analysis shows that the price of DOGE has declined from the May 2021 high of $0.740 to the declining resistance trend line. The offer will drop to $0.049 in June 2022.
Although the price rose after that, it could not break out of the trend line. Instead, he made three failed attempts (red icons) that produced lower highs and longer upper wicks.
Invest smart with our DOGE price predictions.
That all changed last week when DOGE price broke above the 900-day resistance.
It reached a weekly close of $0.069.
The weekly Relative Strength Index (RSI) has not been determined.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to stock or sell the asset.
A reading above 50 and an upward trend indicates that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI is currently at 50, which is a sign of an indeterminate trend.
What do analysts say?
Cryptocurrency analysts at X are bullish on Dogecoin's future prospects.
ZAYKChart posted the same long-term bearish resistance trend line. He believes that the price of DOGE is ready for a big bullish wave.
Since the DOGE/BTC chart is trading at high support, RoverVC has gone as far as to state that DOGE is outperforming Bitcoin (BTC).
However, rektcapital is not convinced of the bullish outlook. This is due to the fact that the price of DOGE has yet to break through a small downward trend.
He says so.
Complicated weekly close for #dogecoin 1W close below the channel High resistance has occurred which means #Doge breakout has been postponed Previous 1W closes like this -> lower but if DOGE holds highs and takes the channel's high support as support – there may still be a chance
Doge Price Forecast: Is This the Beginning of a Reversal?
Daily timeframe technical analysis provides a bullish view of the DOGE price divergence from the 900-day resistance trend line. On October 20, DOGE price broke above the short-term downtrend resistance line.
This not only led to the ongoing rise, but also a retracement of the $0.060 horizontal support area, indicating that it was only a divergence from the previous drop below.
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Similarly to the weekly timeframe, the daily RSI is bullish. The index is increasing and is above 50, both are considered signs of a bullish trend.
However, it is worth mentioning that the price of DOGE has been rejected by the 0.618 Fib retracement resistance level (red icon). It has been down since October 26th.
The principle of Fibonacci retracement levels suggests that after a large price movement in one direction, the price will partially return to the previous price level before continuing in the same direction.
The 0.618 Fib level usually determines whether an upward move is correcting or not. Therefore, the price of DOGE must go above it to confirm the reversal of the bullish trend.
If so, a 20% increase to the July high of $0.083 is expected.
Despite this bullish DOGE price forecast, a close below the minor support at $0.066 would result in a 13% decline to the nearest support at $0.060.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
