During the first week of February, the DOGE price began a considerable upward move, at one point increasing by 40%. This caused a breakout from a long-term descending resistance line, supposedly initiating a new, long-term upward trend.
However, the DOGE price has barely moved since then, being seemingly stuck in a range. Throughout April, the number of daily transactions has begun to trend upward, approaching the highest levels since the first week of February, indicating that there is increased interest around the coin.
SponsoredThis has yet to have a positive effect on the price of the coin, as was evidenced when self-described “DOGE Maximalist” @Larousse____ tweeted a DOGE chart, expressing frustration that the price has not yet begun an upward move. Once it does, he has outlined quite a rapid increase in which the price reaches a high of 110 satoshis by the end of the year, which is more than three times higher than the current price.
https://twitter.com/Larousse____/status/1250202426390372352
Will the DOGE price begin an upward move, and more importantly, will it reach the 110-satoshi target once it does so? Continue reading below if you are interested in finding out.
Resistance Breakout
In the beginning of February, the DOGE price broke out from a very long-term descending resistance line that had been in place for a total of 980 days. While movements outside of such long-term lines often result in a rapid continuation in the same direction, that has not yet occurred with DOGE.
The weekly RSI has been generating very considerably bullish divergence since July 2019, another sign that the price is likely to move upwards. If it does so, the closest resistance area is found at 80 satoshis.
The Price Is Range Trading
When looking at the DOGE price in the daily time-frame, it is visible that the price is trading in a range between 26 and 33 satoshis and has been doing so for the past 174 days. The movement inside this area has all the characteristics of a consolidation period inside a range:
- The RSI is freely crossing above and below the 50 line.
- The price is crossing above and below the 200-day moving average (MA).
- The price has validated both the resistance and support levels numerous times.
Therefore until the price breaks out/down from this range, it is expected to move from support to resistance and vice-versa. Because of the movement above the long-term descending resistance line outlined in the previous section, the price is more likely to break out than down.
However, DOGE has not given any indications that it wants to begin an upward move. Therefore, it is possible that it continues trading inside the current range for a period of time.
To conclude, the DOGE price has broken out above a long-term descending resistance line, indicating that it has begun a bullish trend. However, the price is still consolidating in anticipation of its future upward move. When/If the price begins an upward move, it is expected to find resistance at 80 satoshis.
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