Dogecoin (DOGE) is preparing to exit the pattern: traders are on alert

Dogecoin approaches a significant level of resistance in the long term

According to the weekly timeframe, the popular meme-based cryptocurrency has been trading within an ascending parallel channel since June 2023. In December, DOGE experienced a bullish breakout, reaching a high of $0.108, which was the highest price for 2023.

However, the price was unable to sustain its growth and retraced back within the channel, confirming the upper limit of the channel as resistance on two occasions (red icons). Nevertheless, Dogecoin remained above the midline of the pattern. Furthermore, the price started to rebound from this level and is once again approaching the resistance line.

Source: TradingView

The daily Relative Strength Index (RSI) is providing bullish signals, with the indicator above the neutral level of 50 and trending upwards, indicating an uptrend.

DOGE Forecast: Will the Bullish Breakout Be Sustainable?

The six-hour timeframe strengthens the bullish signals observed on the daily chart.

The chart shows that the DOGE price broke through a descending resistance line and confirmed it as support on February 12 (green icon). This is a typical price action after breakouts, often signaling a continuation of the trend.

Despite the price increase, the token has not managed to break through the horizontal resistance zone at $0.088. On the contrary, the price experienced a pullback from this level (red icon) and decreased slightly. However, the coin is still trading above the breakout level and a minor support at $0.083.

If the Dogecoin price manages to surpass $0.088, it could potentially rise towards the next resistance level at $0.102, thus breaking out of the long-term channel.

Source: TradingView

Despite the optimistic outlook, a close below $0.083 for DOGE could trigger a 10% decline towards the descending resistance line at $0.077.

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