The Dogecoin (DOGE) price has increased swiftly since Oct. 18, breaking out from long- and short-term descending resistance trend lines.
Despite the breakout, the price has yet to accelerate its rate of increase. Will it do so now?
Dogecoin Increases After Breakout From Long-Term Resistance
Dogecoin’s weekly timeframe technical analysis reveals that the price had fallen under a long-term descending resistance trend line since the all-time high of May 2021. The descent culminated with a low of $0.049 in June 2022.
Afterward, the DOGE price bounced but failed to break out from the resistance. The failed attempts created lower highs and long upper wicks (red icons), considered signs of selling pressure.
Despite the failed breakout attempts, the DOGE price regained its footing again. It finally broke out from the trend line in November. At the time of the breakout, the trend line had been in place for more than 900 days.
While the weekly time frame is decisively bullish, the daily one suggests that a retracement can occur before the price continues to increase. This is because of the daily RSI.
The daily RSI has generated a bearish divergence (green), a bearish occurrence where a momentum decrease accompanies a price increase. This often leads to downward movements, as was the case with DOGE yesterday.
Despite this bearish DOGE price prediction, an increase above the November high of $0.078 will mean the correction is complete. In that case, a 30% increase to the next resistance at $0.100 will be expected.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.