Dogecoin Breaks 900-Day Resistance Line: Can the Rally Continue?

2 минуты чтение

6 месяцев тому назад admin

Dogecoin made a significant breakthrough by surpassing a 900-day descending resistance line in October. This resistance line had previously caused three notable price rebounds (indicated by red markers). Following the breakout, DOGE reached a peak of $0.082 and experienced a slight correction.

On the weekly timeframe, the Relative Strength Index (RSI) rose above the neutral 50-mark, signaling optimism in the market.

Renowned crypto trader Crypto Tony highlighted the bullish breakthrough of the descending resistance line, cautioning about a potential price pump. A similar chart was presented by analyst Rekt Capital, who, having been skeptical of the upward movement initially, emphasized DOGE’s breakout from the channel.

DOGE Forecast: Reversal Initiated or Still Uncertain?

While the weekly timeframe exhibits decisively bullish signals, doubts arise regarding the continuation of the upward movement in the short term, as indicated by the daily chart. The primary reason for this is the readings from the daily Relative Strength Index (RSI).

During the recent peaks, the momentum indicator formed a bearish divergence. This typically occurs when a decline in momentum follows a surge, leading to a price dip.

Additionally, the meme token consistently forms long upper wicks (red markers), considered signs of selling pressure.

If the DOGE price starts to decline, a potential 15% drop to the nearest support area around $0.067 can be anticipated.

Image for illustrative purposes only.

Despite this somewhat pessimistic forecast, a rise above the November peak at $0.082 would signal the completion of the correction. In such a scenario, a 24% price increase to the next resistance level at $0.10 could be expected.