Dogecoin (DOGE) has returned to re-test its previous breakout level after a huge spike in the last week of 2020.
The Dogecoin / Bitcoin pair is very close to breaking out of over three years of falling resistance line.
Long term Dogecoin levels
During the week from December 28 to January 4, DOGE rose sharply, from a low of $ 0.0041 to a high of $ 0.013, an increase of 233%.
However, such high prices could not be maintained. The DOGE was rejected at a retreat of 0.618 Fib of $ 0.0124 and left a long top wick behind. Since then, DOGE has been moving downhill.
Nonetheless, DOGE came back to verify the $ 0.0068 breakout level. As long as the DOGE is above this level, the long-term trend is considered bullish.
Moreover, the weekly technical indicators are bullish, supporting the continuation of the uptrend and another attempt to break above $ 0.0124.
Daily chart
The daily chart shows DOGE rebounded at a retracement of 0.618 Fibs, measured from the December 23 low.
The rebound and long bottom wick generated at this level confirm the possibility that the DOGE is in a long-term uptrend despite its ongoing decline.
However, the technical indicators at the daily intervals have turned bearish. The MACD made more bars with lower dynamics and the RSI dropped below 70 - both typical signs of a trend reversal. If a stochastic oscillator would run a bearish cross, it would likely confirm a downtrend.
The two-hour intervals show that the DOGE is likely to be inside a parallel descending channel, a sign of a corrective movement. This further confirms the possibility that the current decline is a correction and that DOGE will eventually increase.
MACD is moving up and so is RSI. RSI crossing above the 50 line will further support the upward trend.
If the DOGE makes a higher low and manages to stay above the $ 0.0084 support, it is likely to confirm that the short-term trend is up.
Conclusion
The DOGE / USD pair is expected to resume its upward move soon and eventually move towards the $ 0.0176 - $ 0.0183 region.
The DOGE / BTC pair is very close to breaking out of a long-term falling resistance line. This is a move that has the potential to catalyze significant price increases.
greetings
The Dogecoin / Bitcoin pair is very close to breaking out of over three years of falling resistance line.
Long term Dogecoin levels
During the week from December 28 to January 4, DOGE rose sharply, from a low of $ 0.0041 to a high of $ 0.013, an increase of 233%.
However, such high prices could not be maintained. The DOGE was rejected at a retreat of 0.618 Fib of $ 0.0124 and left a long top wick behind. Since then, DOGE has been moving downhill.
Nonetheless, DOGE came back to verify the $ 0.0068 breakout level. As long as the DOGE is above this level, the long-term trend is considered bullish.
Moreover, the weekly technical indicators are bullish, supporting the continuation of the uptrend and another attempt to break above $ 0.0124.
Daily chart
The daily chart shows DOGE rebounded at a retracement of 0.618 Fibs, measured from the December 23 low.
The rebound and long bottom wick generated at this level confirm the possibility that the DOGE is in a long-term uptrend despite its ongoing decline.
However, the technical indicators at the daily intervals have turned bearish. The MACD made more bars with lower dynamics and the RSI dropped below 70 - both typical signs of a trend reversal. If a stochastic oscillator would run a bearish cross, it would likely confirm a downtrend.
The two-hour intervals show that the DOGE is likely to be inside a parallel descending channel, a sign of a corrective movement. This further confirms the possibility that the current decline is a correction and that DOGE will eventually increase.
MACD is moving up and so is RSI. RSI crossing above the 50 line will further support the upward trend.
If the DOGE makes a higher low and manages to stay above the $ 0.0084 support, it is likely to confirm that the short-term trend is up.
Conclusion
The DOGE / USD pair is expected to resume its upward move soon and eventually move towards the $ 0.0176 - $ 0.0183 region.
The DOGE / BTC pair is very close to breaking out of a long-term falling resistance line. This is a move that has the potential to catalyze significant price increases.
greetings
Comment:
Dogecoin is flying to call again 0.618 fib, and by the way MA200 on the 4h chart, then waits for a strong break.
