On February 8, the DOGE price initiated a rapid upward move, breaking out above a long-term descending resistance line. It reached a high of 35 satoshis the next day but has been decreasing since.
Dogecoin (DOGE) Price Highlights
- The DOGE price broke out above a 980 day descending resistance line.
- The weekly RSI is bullish.
- There is resistance at 35 & 80 satoshis.
- There is support at 25 satoshis.
- The price has possibly completed a double bottom.
- It is facing resistance from the 200-day moving average (MA).
Trader @J0hnnyw00 tweeted a DOGE chart, stating that the price movement looks very bullish and he expects an upward move soon. He has outlined an ascending support line, one which the price seems to have just bounced on.
Dogecoin Looks Bullish | Can Move Very Soon! $DOGE #Dogecoin TradingView https://t.co/XRvF03ANdt
— Johnny Woo | Never DM you for Money (@j0hnnyw00) February 27, 2020
Let’s take a closer look at the DOGE price movement and determine if the bounce will lead to a sustained rally.
Long-Term Breakout
On February 8, the DOGE price created a bullish candlestick and increased all the way to 35 satoshis the next day. While this might seem insignificant at first glance, it caused a breakout above a 980-day descending resistance line.
The weekly RSI has been generating significant bullish divergence over the past five months, suggesting that the price will soon begin a long-term upward move. If it does, the main resistance area is found at 80 satoshis.
Double Bottom
Since the beginning of the year, the DOGE price has created a double/triple bottom at 25 satoshis, creating a support area. The last two bottoms were combined with a bullish divergence in the daily RSI.
However, the price is facing close resistance from the 200-day moving average (MA). If it is successful in moving above it, which is expected due to the creation of a double bottom and the long-term breakout — it could initiate a rapid price increase towards the range high at 35 satoshis.
To conclude, the DOGE price has created a bullish reversal pattern at 25 satoshis. As long as the price stays above this area, it is expected to move upwards towards the resistance area at 35 satoshis.
