There is speculation that Dogecoin (DOGE) will be used for peer-to-peer payments in X’s new feature.
The DOGE price still trades inside a corrective pattern whose resistance trend line rejected it yesterday.
Dogecoin Breakout and Retest
The weekly chart shows that the DOGE price has fallen under a descending resistance trend line since October 2022. After 400 days, Dogecoin finally broke out in November 2023, reaching a high of $0.107 the next month.
However, DOGE has fallen since. It returned to the trend line in January 2024, validating it as support (green icon) and bouncing.
Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. The weekly RSI bounced at 50 and is increasing, indicating a bullish trend.
Read More: Dogecoin vs. Bitcoin: An Ultimate Comparison
What Are Analysts Saying?
Cryptocurrency analysts and traders on X are extremely bullish on the future DOGE prospects.
This is because X has established a dedicated account for payments on its platform, spurring speculation that DOGE will be used for cryptocurrency payments within the platform.
CryptoGodJohn suggests the breakout and retest are complete. He tweeted:
$DOGE break out — retest complete Now at a big level — flips this and can see the next leg higher towards $.10 New narrative starting —-
@XPayments account just created…Rumors that X / Twitter will start using DOGE as the universal payment for X All eyes on
@elonmusk over next few days
The Birb Nest is also bullish because of the payments platform on X, while Pepa suggests the price will reach $10.Cevo is bullish for similar reasons, stating that:
This is the best time to own some $DOGE. Even when it becomes the main currency for X Payments, it won’t be as bullish as the speculation to become one. There is literally no second best time
Read More: How to Buy Dogecoin (DOGE) Anonymously
DOGE Price Prediction: Can Price Break Out?
Even though the weekly time frame gives a bullish outlook, the daily readings do not align because of the price action and RSI. The price action shows that DOGE fell back inside the confines of an ascending parallel channel. The channel has been in place since June 2023.
While DOGE broke out from the channel in December, it failed to sustain the increase (green icon) and fell below its resistance trend line at the start of the year. Since then, it has validated the resistance trend line twice (red icon), most recently yesterday.
The daily RSI is also at 50 (red circle), a sign of an undetermined trend. Whether the price breaks out from the channel or resumes its rejection will likely determine the future DOGE trend.
A breakout from the channel can trigger a 40% DOGE price increase to the next resistance at $0.118. Conversely, failure to do so can cause a 27% drop in the channel’s support trend line at $0.060.
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