The Dogecoin (DOGE) price has finally cleared a long-term diagonal resistance area. However, it has not initiated an upward movement yet, something that often occurs after such long-term breakouts.
In any case, the readings from the weekly and daily time frames both support the continuing increase, which would legitimize the long-term breakout.
Dogecoin Price Finally Clears 805-Day Resistance
In technical analysis of the weekly time frame, it is observed that the price of DOGE has been following a descending resistance line since its peak value of $0.739 in May 2021. This decline led to a low point of $0.049 in June 2022.
Afterward, DOGE experienced a recovery (green icon) and began trading above the $0.060 horizontal support level. After numerous failed attempts over a six-month period, the DOGE price finally cleared the resistance line last week.
At the time of the breakout, the line had been in place for 805 days. Breakouts from such long-term structures usually lead to pronounced increases since they suggest that the previous trend has ended.
However, the price has not yet begun its increase.
The weekly Relative Strength Index (RSI) reading does not provide a clear conclusion. RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and make decisions regarding buying or selling an asset.
RSI readings above 50 and trending upward suggest that the bulls still have an advantage, while readings below 50 indicate the opposite.
Although the RSI is increasing, it remains below 50, indicating an uncertain trend. To confirm a bullish trend, the RSI needs to rise above 50.
DOGE Price Prediction: Will Price Sustain Increase?
The technical analysis from the daily time frame provides a mostly bullish reading. The reason for this comes from the price action and the RSI readings.
The DOGE price broke out from a descending resistance line on June 22. Then, it validated it as support and began to move upwards.
After several failed attempts, DOGE finally cleared the 0.382 Fib retracement resistance level at $0.075. However, it has not reached a daily close above it yet. This will be required to confirm the bullish trend and could lead to an increase to the 0.618 Fib retracement resistance level at $0.085.
However, if the DOGE price fails to close above the 0.382 Fib, a drop to the $0.065 horizontal support area will likely transpire.
The long-term DOGE price prediction is bullish since the price has cleared the 805-day resistance line. Despite the price failing to initiate a significant upward movement, the trend remains bullish as long as DOGE does not close below this resistance line.
However, the bullish trend will be invalidated if DOGE closes below the long-term resistance line.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
