The king of meme coins, DOGE, is experiencing important breakthrough moments like others in the market amidst turbulence. The bear markets that have been ongoing for over 1.5 years have caused significant losses for investors. However, the current situation shows that there are 600-800 day trend breakouts in many altcoins. The charts are exciting.
Current Status of Dogecoin (DOGE)
The price of DOGE has cleared an important long-term resistance area, but it has not yet initiated the impressive rise typically seen after such breakouts. However, both weekly and daily timeframe readings are creating potential bullish setups that confirm the long-term breakout.
In the weekly timeframe technical analysis for DOGE, it is stated that the cryptocurrency has followed a downward resistance trendline since reaching its all-time high of $0.739 in May 2021. This decline resulted in a bottom of $0.049 in June 2022.
Subsequently, DOGE went through a recovery phase and started trading above the horizontal support level of $0.060. Despite several failed attempts over six months, the price of DOGE finally surpassed the resistance line on July 15th. This line had been in place for 805 days.
Will Dogecoin Rise?
The price breaking free from the 805-day line usually leads to significant price increases, as it indicates the end of the previous trend. The rise is largely fueled by Elon Musk’s rebranding on Twitter. The daily chart also supports the upward movement. If Bitcoin does not encounter excessive selling pressure due to rumors about Binance, the positive scenario may continue.
The current bullish outlook suggests an approximate 100% target of $0.15. However, for this to happen, the RSI must stay above 50, and the price must maintain its current position. Otherwise, a drop to $0.06 may occur.
At the time of writing, the price of Bitcoin is holding at $29,000. After the FUD, the price needs to reclaim the critical threshold and surpass $29,250 and $29,500. For a strong upward movement in DOGE, a daily close above $29,700 would be supportive.
Investors should be prepared for volatility due to upcoming macro data announcements tomorrow and on Friday. The ADP data did not come out well today, and it is likely that the TDÄ° data on Friday will be negative for cryptocurrencies. As long as there is no easing in the employment front, there is a risk of further tightening from the Fed. If there is easing, it may drop as it has already priced in the cryptocurrency recession. Therefore, we need to see a critical announcement that will differentiate cryptocurrency positively in the market in the next few months.
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