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Dogecoin (DOGE) Bulls Rejoice as Price Recovers After New Yearly Low

2 mins
Updated by Geraint Price
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In Brief

  • Dogecoin (DOGE) is trading inside a long-term symmetrical triangle.
  • There is resistance at $0.079.
  • Dogecoin (DOGE) price is following a short-term descending resistance line.
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The Dogecoin (DOGE) price has increased significantly over the past five days. However, it has not confirmed its bullish reversal yet.

The DOGE price has followed a long-term ascending support line since June 2022. When combined with the resistance line that began in December of the same year, this creates a symmetrical triangle, which is considered a neutral pattern. 

On March 10, the price bounced at the support line (green icon), after briefly falling to a new yearly low. Similar to other cryptocurrencies, Dogecoin has increased since, creating several successive bullish candlesticks.

However, the daily RSI is still below 50. Moreover, the price today failed to reach the $0.079 resistance area. As a result, the trend cannot be considered bullish yet.

Dogecoin (DOGE) Neutral Pattern
DOGE/USDT Daily Chart. Source: TradingView

Dogecoin (DOGE) Price Struggles to Confirm Trend

The technical analysis from the six-hour chart shows that the DOGE price has fallen under a descending resistance line since the beginning of February. More recently, the line caused a rejection on March 13 (red icon), ending the reversal that began after the new yearly low. 

The six-hour chart reiterates the importance of the $0.079 resistance area. However, it does not help determine whether the digital currency will reach it and potentially break out. While the RSI is above 50, it has not generated any bullish divergence yet. Therefore, both a breakout and rejection remain possible.

Dogecoin (DOGE) Price Short-Term
DOGE/USDT Six-Hour Chart. Source: TradingView

So, the Dogecoin price trend is still undetermined. The short-term trend can be considered bearish until the price moves above $0.079. However, the direction of the long-term trend will be determined by whether the price breaks out or down from its symmetrical triangle. A breakout could lead to highs near $0.110, while a breakdown could lead to a fall to $0.050.

For BeInCrypto’s latest crypto market analysis, click here.

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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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