The DOGE price surged to $0.077 yesterday, but the rally was short-lived. We have already discussed the details of the news-driven movement. So, what are the expectations for the DOGE price in the short and medium term? As always, there are two possibilities, and low volatility in Bitcoin suggests that a major breakout could be imminent.
Dogecoin (DOGE)
While there are two possibilities, BTC and others have been largely continuing their path straight up or down for some time. The lack of interest from investors and the reduced dominance of market makers in the sector since May have contributed to this.
The DOGE price has broken out of the long-term descending resistance line. However, the inability to initiate a significant price increase after the breakout is a concerning sign for the future price outlook. Additionally, the short-term movement is inconclusive. Therefore, the breakout may still be illegitimate. Technical analysis on the weekly time frame reveals that the DOGE price has fallen below a descending resistance line since May 2021, when it reached an all-time high of $0.739. This decline opened the door to the $0.049 low.
The price then surged but failed to break out of the resistance line. Instead, it was rejected by the resistance line and the $0.15 resistance area.
Dogecoin Price Prediction
On July 15, 2023, DOGE finally broke out of the resistance line. At that time, this line had been in place for 805 days. A similar movement occurred in the DOGE/BTC pair. Breakouts from such long-term structures usually lead to significant price increases, but this was not the case for DOGE. Instead, the price is still close to the breakout level.
DOGE investors have two possibilities ahead. The price will either confirm the upward breakout and reach $0.15 with an approximately 100% increase or return to the $0.06 support with a 20% decline. Similar to the weekly analysis, the daily chart does not provide a clear direction.
On the upside, the DOGE price broke out of the 265-day descending resistance line on July 24. It then retraced and confirmed it as support on August 4. However, DOGE failed to make a significant rebound after the breakout. Instead, the price has been in a downward breakout process from the rising parallel channel formation that has been in place since the lowest level in June.
Rising parallel channels typically contain corrective movements. If the same occurs again, readings on the daily chart indicate a potential decline of up to 25% to $0.055. If a breakout from the channel occurs, the bearish scenario is invalidated, and the price could reach $0.15 (the same target as the weekly chart).
