Signals on different timeframes on DOGE do not give unambiguous results. Therefore, the movement of Dogecoin over the next few days will be important in determining the direction of the future trend.
The movement of Dogecoin over the next few days will be important in determining the direction of the future trend.
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Dogecoin is approaching the convergence point of resistance and support
The Dogecoin Dogecoin project is one of the most recognizable “calling cards” of the crypto market and has many fans. Although it emerged in 2013 as a meme coin, many already believe that DOGE has outgrown its status as a mere meme.
According to technical analysis of the weekly chart, the price of DOGE has been declining along a descending resistance line since reaching a high of $0.739 in May 2021. This decline led to a June 2022 low of $0.049.
The DOGE price then began to recover (green icon) and began trading above the $0.060 horizontal support level. However, it has yet to break the long-term downward resistance line, which is 805 days old.
The token bounced off this resistance line last week (red icon), but the bulls are currently making another attempt to break it.
The token bounced off this resistance line (red icon) last week, but the bulls are currently making another attempt to break it.
In addition, the price is in close proximity to the convergence area of the horizontal support level and the descending resistance line. This is a sign that she will soon have to make an important choice.
Source: TradingView
The weekly Relative Strength Index (RSI) readings are not conclusive. Although this indicator is rising, it remains below the 50 mark, reflecting trend uncertainty. For the bullish trend to be confirmed, RSI needs to rise above 50 and DOGE needs to make a bullish breakout of the descending resistance line.
A bullish breakout of the descending resistance line.
DOGE forecast: the bullish breakout does not look confirmed
Like the weekly timeframe, the daily chart is also giving contradictory signals.
On the one hand, on June 22, DOGE made a bullish breakout of the descending resistance line. Having tested its strength as support (green icon), the token resumed its rise. Moreover, the price returned to the horizontal support area of $0.065.
In addition, the RSI index broke its bearish trend line (green color) and is now above the 50 level.
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On the other hand, however, DOGE has not moved above the 0.382 Fibo retracement resistance level at $0.073. On the contrary, the price bounced off this resistance and is now trading below it.
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The daily timeframe also shows that the DOGE price is trading below an important resistance level, but above an important support level. As a result, the direction of the short-term breakout may also determine the longer-term trend.
The direction of the short-term breakout may also determine the longer-term trend.
Source: TradingView
In the longer-term outlook, if the market breaks the long-term resistance line, DOGE could rise to the next resistance at $0.15. However, if the long-term horizontal support is broken, a sharp fall to $0.030 could follow.