Will Dogecoin (DOGE) Price Increase? 798-Day Resistance Holds the Key
The Dogecoin (DOGE) price trend is inconclusive against the US Dollar but is decisively bearish against Bitcoin (BTC).
Various DOGE/BTC readings are bearish, suggesting that the trend is moving downwards. A strong bounce and reclaim is required to invalidate this bearish outlook.
Dogecoin Price Trades Between Crucial Resistance and Support
Based on the technical analysis of the weekly time frame, it is noted that the price of DOGE has fallen below a descending resistance line after reaching its highest price of $0.739 in May 2021. This decline led to a low of $0.049 in June 2022.
Afterward, the DOGE price recovered (green icon), trading above the $0.060 horizontal support level. However, it has not yet surpassed the long-term descending resistance line, which has been in place for 798 days.
More recently, the line rejected the DOGE price last week (red icon) but is currently making another breakout attempt. Moreover, the price trades very close to the convergence of the horizontal support level and the descending resistance line, indicating that a significant movement is expected soon.
The weekly Relative Strength Index (RSI) reading does not provide a clear conclusion. The RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and make decisions about buying or selling an asset.
Readings above 50 and an upward trend suggest that the bulls still have an advantage. Conversely, readings below 50 indicate the opposite.
The RSI is rising but remains below 50, indicating an uncertain trend. To confirm a bullish trend, it would be necessary for the RSI to rise above 50 and for DOGE to break out from the descending resistance line.
Read More: Best Crypto Sign-Up Bonuses in 2023
Dogecoin Price Loses Ground Against Bitcoin
While the DOGE/USDT chart remains undetermined, the Dogecoin price is losing ground against Bitcoin (BTC). The weekly chart shows that the DOGE/BTC price has closed below the ₿0.0000023 support area.
This is crucial since it has intermittently acted as both resistance and support since the beginning of 2021. So, a close below it is a strong sign that the trend is bearish and a downward trend has begun.
The RSI also supports this possibility. The indicator fell below 50 at the beginning of the year (red icon) and has been downward since. These are both considered bearish signs.
If the decrease continues, the next closest support area will be at ₿0.0000010. The level has not been reached since the start of 2021.
Despite this bearish DOGE price prediction, a movement above the ₿0.0000023 area will mean that the breakout was invalid.
Since this would also cause a movement above a descending resistance line, it could likely accelerate the rate of increase to ₿0.0000040.
For BeInCrypto’s latest crypto market analysis, click here.