DOGE Breaks Out and Targets $0.0055

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In Brief
  • DOGE is trading between support and resistance at $0.0043 and $0.0055.

  • If it breaks out above $0.0055, it could move towards $0.0068

  • DOGE/BTC is trading inside long-term support at 17 satoshis.

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The Dogecoin (DOGE) price has broken out from a long-term resistance level and validated it as support afterwards.

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DOGE should continue increasing and break out from the resistance area outlined in the article.

Similarly, DOGE/BTC has reached a crucial long-term support area from which a bounce is likely.

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Breakout and Retest

The weekly chart shows that DOGE has been moving upwards since March. While it initially struggled to move above the $0.0035 resistance area, it successfully broke out during the week of Dec 14 – 21. It also reached its highest weekly close since Oct 2018.

Technical indicators are bullish since all three of the RSI, MACD, and Stochastic Oscillators are increasing. The latter is very close to forming a bullish cross.

If the upward move continues, the next resistance area is at $0.0068.

Chart By TradingView

The daily chart provides a similar outlook.

DOGE has broken out from and validated the $0.0043 area. However, the long upper wick from yesterday simultaneously validated the $0.0055 area as resistance.

Technical indicators are similarly bullish, despite the bearish divergence in the RSI. The MACD is increasing, and the Stochastic Oscillator has almost made a bullish cross.

Therefore, it’s likely to attempt another breakout above the $0.0055 resistance area before possibly moving higher to $0.0068.

Chart By TradingView

DOGE/BTC

Cryptocurrency trader @CryptoMichNL outlined a DOGE chart, stating that it has reached a crucial support level where a bounce is likely.

Targets for the bounce include 69, 91, and 109 satoshis.

Source: Twitter

The support is at 17 satoshis and has been in place since the beginning of 2017. DOGE has been trading inside this over the past two months, forming significant bullish divergence up to the three-day RSI.

Furthermore, the MACD shows a bullish reversal sign, and the Stochastic Oscillator has just made a bullish cross.

Therefore, DOGE should continue rallying towards the next closest resistance areas at 35 satoshis and possibly 50 satoshis.

DOGE Chart By TradingView

Conclusion

To conclude, DOGE could make another attempt to break out above the $0.0055 resistance area and, if successful, move towards $0.0068.

DOGE/BTC is also likely to bounce from the current support area and move towards 35 and possibly 50 satoshis.

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.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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