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“Breaking News: Can Dogecoin (DOGE) Break the 791-Day Resistance Barrier?”

Is Dogecoin (DOGE) Price Poised to Shatter 791-Day Resistance Barrier?

Dogecoin (DOGE) has recently shown signs of a potential breakout from a 791-day descending resistance line. While this is a positive development, there are still concerns about the long-term prospects of the popular meme cryptocurrency. In this article, we will analyze the technical indicators and price movements to determine if DOGE is poised to shatter the resistance barrier and continue its upward trajectory.

Dogecoin Price Consolidates Below Long-Term Resistance

On the weekly time frame, DOGE has been trading below a descending resistance line since reaching an all-time high of $0.739 in May 2021. The price subsequently dropped to a low of $0.049 in June 2022. Although DOGE has since rebounded and traded above the $0.060 horizontal area, it has not yet broken out from the long-term resistance line, which has been in place for 791 days.

The weekly RSI (Relative Strength Index) currently provides an undetermined reading. A reading above 50 and an upward trend suggest bullish momentum, while readings below 50 indicate the opposite. The RSI is increasing but remains below 50, indicating an undetermined trend. A breakout from the resistance line combined with an RSI movement above 50 would confirm a bullish trend.

DOGE Price Reclaims Level After Failed Breakdown

On the daily time frame, the technical analysis for DOGE provides a more bullish outlook. The price recently experienced a deviation below the $0.065 horizontal area, followed by a successful reclamation of that level. These movements often indicate that buyers have taken control after a failed breakdown attempt by sellers.

Additionally, DOGE has broken out from a 79-day descending resistance line, further supporting the possibility of a bullish reversal. The price is currently trading just below the 0.382 Fibonacci retracement resistance level at $0.073. A movement above this level would confirm a bullish trend. The next resistance level would be at $0.086, created by the 0.618 Fibonacci retracement resistance level.

The daily RSI also supports the bullish outlook, as it has broken out from a descending resistance line and is now above 50. These are considered signs of a bullish trend.

Conclusion

While there are still concerns about the long-term prospects of Dogecoin, the recent price movements and technical indicators suggest a potential breakout is on the horizon. If DOGE can successfully break out from the resistance barrier, it could continue its upward trajectory and potentially target the next resistance level at $0.086. However, it is important to monitor the price closely, as a failure to break out could lead to a retest of support levels.

This article is not financial advice. As always, do your own research and invest only what you can afford to lose.

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