Dogecoin investors were excited after Elon Musk’s important steps regarding the social media giant. However, Musk did not mention Dogecoin during Twitter’s transformation to X. Moreover, he stated that the platform will never launch its own cryptocurrency. So, what are the current expectations for DOGE?
Will Dogecoin Rise?
The price of DOGE cleared an important long-term resistance area. However, it has not convincingly reversed the downtrend. Readings on the weekly timeframe show that DOGE price fell below a declining resistance line since reaching $0.739, the all-time high in May 2021. This decline led to a low of $0.049 in June 2022.
Afterwards, Doge price started to recover and solidified the $0.6 horizontal support. After several failed attempts over six months, DOGE finally broke the resistance that had been in place for 805 days on July 15th.
Breakouts from long-term structures like this often indicate significant price increases and signal the end of the previous trend. This particular breakout may have occurred due to Elon Musk’s rebranding of Twitter (X).
DOGE Price Analysis
The daily chart of Dogecoin does not provide a clear direction due to the sudden changes that occurred this year. On the bullish side, DOGE price broke out of a declining resistance line on July 24th. The line had been in place for 265 days before the breakout. However, the price failed to sustain the upward movement and pulled back to the support zone on August 4th.
This breakout continued within the ascending channel since the lowest levels in June. Such channels typically involve corrective movements, meaning that a final breakout is the most likely price scenario in the future. If this happens, the meme coin will fall below the resistance line and invalidate the previous breakout. The 25% decrease promised by the loss of support points to $0.055.
However, if the channel resistance is surpassed, it is likely that the price will reach $0.15 with an approximately 100% increase. We should also note that BTC is currently showing extremely low volatility. It is likely that BTC will experience increased volatility again in the coming days and most altcoins will realize the expected breakouts. Therefore, the direction of Bitcoin is also crucial for DOGE and others.
