Bullish breakout and retest
The weekly chart shows that since October 2022, the price of the popular memcoin DOGE has been declining along a descending resistance line. After 400 days, in November 2023, Dogecoin finally broke this barrier and reached a high of $0.107 the following month.
However, the token has been falling since then. In January 2024, it returned to the trend line, confirmed it as support (green icon) and rebounded.
Source: TradingView
The weekly momentum indicator RSI has bounced from the neutral level of 50 and is rising, indicating a bullish trend.
What experts are saying
Cryptocurrency analysts and traders on social networks are extremely optimistic about DOGE’s prospects.
This is due to the fact that social media giant X (formerly Twitter) has established a dedicated X Payments account for payments on its platform. This has led to speculation that Elon Musk’s favorite, DOGE, will be used for cryptocurrency payments as part of X’s plan to introduce peer-to-peer payment functionality on its platform later this year. At the time of writing, the account had nearly 110 thousand subscribers.
Noted crypto analyst CryptoGodJohn believes that the bullish breakout and retest for DOGE have already occurred. He states:
“$DOGE: bullish breakout – retest completed. We’re at a significant level now. If it holds as support, it could push the price higher, potentially towards $0.10. A new narrative is unfolding… with the creation of the @XPayments account… All eyes are on the rumors that X/Twitter will start using DOGE as a universal payment option on X.”
4-hour chart DOGE/USDT. Source: X
Pepa trader suggests that the price could reach $10. Cevo also mentions the aforementioned fundamental reasons and adds:
“Now is the perfect time to buy some $DOGE. Even when it becomes the main currency for X Payments, it won’t be as bullish as the previous speculation. There’s literally no more convenient time than now.”
DOGE Forecast: Can the price experience a bullish breakout?
Despite the bullish outlook on the weekly timeframe, the daily charts are indicating mixed signals. Price action shows that DOGE has returned to the ascending parallel channel, which has been in place since June 2023.
Although the token experienced a bullish breakout from the channel in December, it failed to maintain the rally (green icon) and fell below the resistance line in the beginning of the year. Since then, it has tested the strength of this resistance line (red icon) twice, with the most recent test occurring yesterday.
The daily RSI is also at 50 (red circle), indicating an undefined trend. The future trend of Dogecoin is likely to depend on whether the price can achieve a bullish breakout from the channel or if it bounces off the resistance.
Source: TradingView
A bullish breakout from the channel could potentially trigger a 40% increase in DOGE’s price, reaching the next resistance level at $0.118. Conversely, a failure to break out could result in a 27% decline, reaching the channel’s support line at $0.060.
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