The price of Dogecoin (DOGE) has broken the multi-month dropping trend line that represented the dominant bearish trend for almost a year. Even if the breakthrough is crucial, DOGE still needs to overcome one more significant obstacle before taking off.
The price of Dogecoin is approaching a breakout.
Since October 31, 2022, the price of Dogecoin (DOGE) has experienced five lower highs and lower lows. By connecting the swing highs with a trend line, it is possible to find a decreasing resistance level. On October 23, DOGE produced a weekly candlestick close above this barrier, indicating a breakout.
The price of Dogecoin is dependent on thisdoDogecoin Price Faces Selling Pressure, Yet DOGE Bulls Anticipate a Breakout Rally. development because it suggests a possible trend reversal. However, $0.0707 represents a crucial barrier that will determine if DOGE consolidates and initiates an uptrend. This barrier must be broken for a weekly candlestick close to start a 17% rally to $0.0814.
The weekly Relative Strength Index (RSI), which just turned over the 50 mean levels and indicated an increase in bullish momentum, is supporting this uptrend. The price of Dogecoin will be able to cross the $0.106 barrier if this barrier is cleared. A 51% gain would result from this strategy.
On the other hand, a sharp correction might be imminent if Dogecoin’s price is rejected around $0.0707. In order to invalidate a bullish thesis, DOGE must generate a weekly candlestick close below $0.0573. This would result in a lower low and indicate that the downtrend is still ongoing. Dogecoin’s price might drop 16% in such a scenario and reach the $0.0495 support level.