The price of Bitcoin is currently at $29,261, and macro data has not been able to move the price. The stagnant trend in Bitcoin price is causing concern among investors for further decline. But what about Dogecoin (DOGE)? Current data suggests that there may be a surprise for the rest of the year.
Dogecoin (DOGE)
The price of DOGE has broken out of an important long-term resistance area. However, the move did not lead to a sharp increase as expected, and the price is currently trading near pre-breakout levels. Nevertheless, there is still an upward trend in both DOGE/USDT and DOGE/BTC pairs in the long term.
Looking at the weekly timeframe technical analysis for DOGE, it can be seen that the meme coin followed a downward resistance trend line after reaching its all-time high of $0.739 in May 2021. This decline laid the foundation for the $0.049 bottom in June 2022.
Subsequently, DOGE entered a recovery phase. It started trading above the horizontal support level of $0.060. After several unsuccessful attempts over a six-month period, the price of DOGE finally broke the resistance that had been in place for 805 days on July 15.
DOGE Price and Bitcoin (BTC)
The breakout from the long-term formation indicates the end of the previous trend. The weekly RSI currently supports the upward movement, and if DOGE continues to rise, it could reach $0.15 with a 100% increase. On the other hand, closes below $0.075 could cause the DOGE price to drop to the $0.06 support. Closes below the final support will lead to deeper lows and invalidate the bullish outlook.
The analysis of BTC pairs was very popular during the 2017-2018 period. Investors followed this strategy as they focused on increasing their BTC holdings and long-term goals seemed more exciting. So, what is the current situation for the DOGE/BTC chart? The weekly timeframe for the DOGE/BTC pair also shows a bullish outlook. There are two main reasons for this.
Firstly, the price regained the 230 Satoshi area after previously dipping below it. Divergences and recoveries are decisive upward movements that often lead to significant increases. The critical area has been holding at 900 days, similar to the USD resistance.
The DOGE price then broke out of a descending resistance line, indicating a bullish trend. If the increase continues, there could be a 45% recovery, equivalent to 370 satoshis.
