The Dogecoin (DOGE) price has broken out from a descending resistance line that had been in place since the beginning of Jan. DOGE should continue increasing towards $0.018 and possibly $0.021.
This is a short/medium-term analysis. For a longer-term analysis, click here.
Breakout and Retest
DOGE has been decreasing alongside a descending resistance line since Jan. 2, when it reached a high of $0.014. After three unsuccessful attempts, it finally broke out on Jan. 14.
However, DOGE has failed to increase significantly since the breakout, and is currently trading between support and resistance at $0.008 and $0.01, respectively.
The latter is the 0.5 Fib retracement level of the entire downward move and a horizontal resistance area, so a breakout above would confirm the bullish trend.
Technical indicators are bullish and support the possibility of a breakout.
The shorter-term two-hour chart further strengthens the possibility of a breakout.
DOGE has been following a short-term ascending support line since Jan. 11 and has flipped the $0.009 support level.
As long as DOGE is trading above these two levels, the short-term trend is bullish.
Doge’s Wave Count
Cryptocurrency trader @DlinkBull outlined a DOGE chart showing a parallel channel. They suggest an increase toward $0.03.
As seen in the first section, DOGE has already broken out from the resistance line of this channel.
DOGE seems to have begun a bullish impulse at the beginning of March (shown in white below), currently trading in wave 3.
The sub-wave count is given in orange, and DOGE is likely in the fifth and final sub-wave. A fall below the sub-wave 1 high at $0.0044 would invalidate this particular wave count.
Sub-wave 5 should end between $0.0181-$0.0184, a target found using an external retracement on sub-wave 4 and projecting the length of sub-waves 1-3 to the bottom of 4.
Afterwards, the entire impulse would likely complete at $0.021, the 4.61 Fib extension of wave 1.
Conclusion
To conclude, DOGE’s rate of increase should accelerate once it moves above $0.01, with a possible target of $0.018.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
