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Dogecoin (DOGE) Price Clears Long-Term Key Resistance: What Comes Next?

3 mins
Updated by Ryan Boltman
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In Brief

  • The Dogecoin (DOGE) price has finally cleared a long-term diagonal resistance line that has been in place for 805 days. Such breakouts often indicate a bullish trend reversal has begun.
  • The readings from multiple time frames are leaning bullish despite failure to confirm the bullish trend reversal. This is visible in the price action and RSI.
  • Failure to clear the short-term 0.382 Fib resistance will likely lead to an initial retracement before the upward movement can continue.
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The Dogecoin (DOGE) price has finally cleared a long-term diagonal resistance area. However, it has not initiated an upward movement yet, something that often occurs after such long-term breakouts.

In any case, the readings from the weekly and daily time frames both support the continuing increase, which would legitimize the long-term breakout.

Dogecoin Price Finally Clears 805-Day Resistance

In technical analysis of the weekly time frame, it is observed that the price of DOGE has been following a descending resistance line since its peak value of $0.739 in May 2021. This decline led to a low point of $0.049 in June 2022.

Afterward, DOGE experienced a recovery (green icon) and began trading above the $0.060 horizontal support level. After numerous failed attempts over a six-month period, the DOGE price finally cleared the resistance line last week.

At the time of the breakout, the line had been in place for 805 days. Breakouts from such long-term structures usually lead to pronounced increases since they suggest that the previous trend has ended.

However, the price has not yet begun its increase.

Dogecoin (DOGE) Price Movement
DOGE/USDT Weekly Chart. Source: TradingView

The weekly Relative Strength Index (RSI) reading does not provide a clear conclusion. RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and make decisions regarding buying or selling an asset.

RSI readings above 50 and trending upward suggest that the bulls still have an advantage, while readings below 50 indicate the opposite.

Although the RSI is increasing, it remains below 50, indicating an uncertain trend. To confirm a bullish trend, the RSI needs to rise above 50.

DOGE Price Prediction: Will Price Sustain Increase?

The technical analysis from the daily time frame provides a mostly bullish reading. The reason for this comes from the price action and the RSI readings.

The DOGE price broke out from a descending resistance line on June 22. Then, it validated it as support and began to move upwards.

After several failed attempts, DOGE finally cleared the 0.382 Fib retracement resistance level at $0.075. However, it has not reached a daily close above it yet. This will be required to confirm the bullish trend and could lead to an increase to the 0.618 Fib retracement resistance level at $0.085.

However, if the DOGE price fails to close above the 0.382 Fib, a drop to the $0.065 horizontal support area will likely transpire.

Dogecoin (DOGE) Price Breakout
DOGE/USD Daily Chart. Source: TradingView

The long-term DOGE price prediction is bullish since the price has cleared the 805-day resistance line. Despite the price failing to initiate a significant upward movement, the trend remains bullish as long as DOGE does not close below this resistance line.

However, the bullish trend will be invalidated if DOGE closes below the long-term resistance line.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
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