Did DOGE Finally Begin Its Bullish Cycle?

DOGE Highlights

• The DOGE price broke out from a descending resistance line.
• It is trading above significant daily moving averages (MA).
• There is major resistance at 80 satoshis.
• There is minor resistance at 43, 56 & 66 satoshis.

Full-time crypto trader @j0hnnyw00 tweeted a DOGE price chart, stating that the price has found support above the 200-day MA. In addition, his previous tweet provides us with the target between 80-100 satoshis.

#Dogecoin #DOGE $DOGE is testing 200DEMA support now.$NEBL $SYS $DNT $RVN $CHZ $LSK $OGN $AION $WTC $WABI $WRX $PERL $STX pic.twitter.com/E2vh2qk0JM

— Johnny Woo (@j0hnnyw00) February 10, 2020

Let’s take a closer look at the DOGE price movement and attempt to predict where it is heading to next.

DOGE Breakout

On February 8, the DOGE price broke out from a descending resistance line that had been in place for 113 days. The breakout transpired with very significant volume, confirming its validity. DOGE reached a high of 35 satoshis before decreasing slightly to the current price. Technical indicators provide a bullish outlook. First, the price has moved above both the 50- and 200-day moving averages (MA), which are very close to making a bullish cross. Secondly, throughout the entire duration of the descending resistance line, the RSI traded between the 40- and 60-lines. The breakout caused the RSI to briefly go to overbought levels and has now returned to possibly validate the 60-line as support. This movement suggests that DOGE has broken out from its trading range and possibly begun a new upward move. A customary movement from here on would be a retest of the daily moving averages and the descending resistance line before the price continues its upward movement.

Long-Term Resistance

A look at the weekly chart shows that DOGE has possibly broken out above another long-term descending resistance line, this one in place for 987 days, drawn since the May 2017 all-time high. However, the presence of wicks makes it difficult to draw the exact slope of this line. Furthermore, there is another possible ascending support line (dashed) that the price broke down from in April 2019. Therefore, any possible upward move would be likely to find resistance once it reaches it. The support line turned resistance coincides with the 80 satoshi resistance area in June 2020, making it a suitable time for the price to reach it. As for minor support areas, those can be found using a Fibonacci retracement tool from the previous high, which was reached in September 2018. Doing so gives us minor resistance areas of 43, 56, and 66 satoshis, which could offer slight resistance to the price prior to it reaching 80 satoshis. To conclude, the DOGE price has broken out from two descending resistance lines, one long- and the other short-term. We believe this is the beginning of an upward move and that the price will continue moving upwards towards the target at 80 satoshis.