In any case, weekly and daily timeframe signals support continued upside, reinforcing the fact of a long-term DOGE breakout.
Anyways, the weekly and daily timeframe signals support continued upside, reinforcing the fact of a long-term DOGE breakout.
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Dogecoin has broken through 805-day resistance
The Dogecoin project Dogecoin 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 DOGE exchange rate peaked at $0.739 in May 2021 and has been moving along a downward resistance line since then. As a result, the market marked a low of $0.049 in June 2022.
After that, the token launched a recovery (green icon) and started trading above the $0.060 horizontal support level. After numerous failed attempts over a six-month period, DOGE finally broke through this resistance line last week.
After numerous failed attempts over a six-month period, DOGE finally broke through this resistance line.
By the time of the bullish breakout, this line was 805 days old. Breakthroughs of such long-term structures usually lead to a pronounced price increase and indicate the completion of the previous trend.
But the price rise has not started yet.
Source: TradingView
The weekly relative strength index (RSI) does not allow us to make a clear conclusion. Although this momentum indicator is rising, it still remains below the 50 mark, indicating an undefined trend. The RSI needs to rise above 50 to confirm a bullish trend.
DOGE outlook: will the rise continue
Technical analysis of the shorter daily timeframe shows a predominantly bullish bias.
On June 22, the DOGE price made a breakout of the descending resistance line. It then turned it into support and started moving up.
After several failed attempts, the coin finally broke above the Fibo 0.382 retracement level at $0.075. However, a daily close above this level has not yet occurred. This event is needed to confirm the bullish trend, and it could lead price higher towards the Fibo 0.618 retracement resistance level at $0.085.
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But if DOGE fails to close above the 0.382 Fibo level, we are likely to see a fall towards the $0.065 horizontal support area.
Source: TradingView
The long-term outlook for DOGE is bullish as the price has broken the 805-day resistance line. Even though it failed to start a meaningful rise, the trend will be considered bullish until the token closes below this resistance line. In that case, the bullish scenario will be canceled.