The Dogecoin (DOGE) price has trended upward in 2024 and reached the resistance trend line of its pattern.
The move is Dogecoin’s second attempt at breaking out. Will it be successful? Let’s find out!
Dogecoin Bounces at Previous Resistance
The weekly time frame technical analysis shows the DOGE price broke out from a descending resistance trend line in November 2023. Before the breakout, the trend line had existed for 400 days. DOGE reached a high of $0.107 before falling.
However, DOGE bounced at the resistance trend line in January 2024 and has increased despite being below its 2023 high.
The weekly Relative Strength Index (RSI) supports continuing the increase.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold, and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The RSI bounced above 50 (green circle) when the price bounced at the resistance trend line, legitimizing the movement.
Read More: Dogecoin vs. Bitcoin: An Ultimate Comparison
DOGE Price Prediction: Breakout Soon?
The daily time frame chart shows that DOGE has traded inside an ascending parallel channel since June. While it initially broke out above it in November 2023, it fell back inside shortly afterward.
Despite the drop, DOGE bounced at the channel’s midline and is now attempting to break out from the resistance trend line (red icons). The daily RSI supports the possibility of a breakout since it is above 50 and increasing.
Read More: How to Buy Dogecoin (DOGE) Anonymously
Cryptocurrency trader InmortalCrypto gives a bullish Dogecoin price prediction, suggesting the meme coin will end its long-term consolidation phase soon and begin a new bull run.
If DOGE breaks out from this channel, it can increase 17% and reach the next resistance at $0.103.
Despite the bullish Dogecoin price prediction, a rejection from the channel’s resistance trend line can cause a 12% drop to its midline at $0.078.
Read More: Dogecoin vs Shiba Inu (SHIB)
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