Dogecoin (DOGE) price has broken through an important long-term resistance area. However, the upward movement that usually follows such breakouts has not yet begun.
However, readings on both the weekly and daily time frames support the potential upside, confirming the legitimacy of the breakout.
Dogecoin price breaks away from long-term resistance
Technical analysis of the daily timeframe shows that since reaching an all-time high of $0.739 in May 2021, DOGE has followed a descending resistance line. The decline led to a low of $0.049 (marked with a green icon on the chart) in June 2022. After this, the price of memcoin rebounded and consolidated above the horizontal support level of $0.60.
On July 15, Dogecoin was able to break above the diagonal resistance line that had existed for 805 days. Breakouts of such long-term structures often lead to significant price increases, signaling the end of the previous trend.
However, the upward movement has not yet begun, and the readings of the weekly relative strength index (RSI) do not allow us to draw a clear conclusion.
DOGE Price Prediction: Has a Bullish Reversal Started?
The daily timeframe, meanwhile, gives much more bullish readings. On June 22, DOGE price bounced off the descending resistance line and confirmed it as support, which led to an upward movement. After several attempts, the asset successfully broke through the 0.382 Fibonacci resistance level at $0.075. It is currently trading below the 0.618 retracement level at $0.085.
The 0.618 Fibonacci resistance level often acts as an upper/lower boundary if the move is corrective in nature. A close above it will confirm the legitimacy of the long-term breakout and could lead to a rally towards the next long-term resistance at $0.15.
The daily RSI is above the 50 level and is growing, supporting the continuation of the upward movement.
However, a close below the 0.382 Fib would mean the trend is still bearish. In this case, DOGE price may fall to long-term support at $0.060.$DOGE
