The Dogecoin (DOGE) price has broken out from a 539-day resistance line, indicating that its long-term correction is complete. The Shiba Inu (SHIB) price has broken out from its own corrective pattern and could be in the initial stages of a long-term upward movement.
DOGE Price Breaks Out From 539-Day Resistance
The DOGE price had decreased underneath a descending resistance line since reaching an all-time high price of $0.738 in May 2021. The downward price movement led to a minimum price of $0.049 in June 2022.
Afterward, the Dogecoin price created a long lower wick and a possible double bottom pattern. The pattern was also combined with bullish divergence in the weekly RSI (green line).
On Oct. 27, the DOGE price broke out from the descending resistance line. At the time of the breakout, the line had been in place for 539 days. Breakouts from such long-term structures signify that a trend reversal has begun.
The Dogecoin price reached a high of $0.158 before being rejected by the $0.150 resistance area (red icon).
Further granting legitimacy to the breakout, the RSI has broken out from its own bearish divergence (trend line).
As a result, the weekly time frame DOGE price prediction is bullish. A weekly close above the $0.15 area is required in order to accelerate the rate of increase.
The short-term six-hour chart supports the possibility of a price retracement. The main reason for this is the double top (red icons) patter and the bearish divergence in the RSI (green line).
If one occurs, the closest support areas would be at $0.119 and $0.106, created by the 0.382 and 0.5 Fib retracement support levels, respectively.
Can Shiba Inu Price Follow Lead Set by DOGE?
The SHIB price broke out from a descending wedge on Oct. 25 and reached a high of $0.000015 four days later. The breakout from the wedge was combined with an RSI breakout and movement above 50, increasing its validity.
However, the SHIB price was rejected by the 0.618 Fib retracement resistance level (red icon) and has been decreasing since. The price has also decreased in the past 24 hours, creating a bearish candlestick.
Currently, Shiba Inu is attempting to validate the $0.000012 area as support. The area had been acting as resistance prior to the breakout.
If the upward movement continues, there is minor resistance at $0.000021 and major resistance at $0.000027. An upward movement towards the latter would amount to an increase of 130%, matching that of DOGE. When measuring from the Oct. lows, it would outpace the DOGE price increase considerably.
On the other hand, a daily close below the $0.000012 support area would invalidate this bullish SHIB price prediction.
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