- Dogecoin (DOGE) is trading within a long-term symmetrical triangle.
- Resistance is at $0.079.
- The DOGE price is following a short-term descending resistance line.
Was the Dogecoin (DOGE) Rally Fake?
The DOGE price has seen a significant increase in the last five days. However, it has yet to confirm a turnaround for buyers.
DOGE price has been following a long-term rising support line since June 2022. When combined with a resistance line that began in December of the same year, it forms a symmetrical triangle, which is considered a neutral pattern.
On March 10, there was an upward movement at the support line (green symbol) after a brief drop to the new low of the year. Like other cryptocurrencies, Dogecoin also increased after this date, forming several consecutive bullish candles. However, the daily RSI is still below 50. Additionally, today’s price did not reach the $0.079 resistance area. As a result, the trend cannot yet be considered bullish.
Dogecoin (DOGE) Price Trend Difficult to Confirm
Technical analysis on the six-hour chart shows that the DOGE price has fallen below a descending resistance line since the beginning of January. More recently, the line was rejected on March 13 (red symbol), ending the turnaround that began after the new yearly low. The six-hour chart emphasizes the importance of the $0.079 resistance area.
However, it does not help determine whether the digital currency will reach this area and potentially make a breakout. Although the RSI is above 50, it has not yet formed a bullish divergence. Therefore, both a breakout and a rejection are possible.
Therefore, the Dogecoin price trend is still uncertain. The short-term trend can be considered bullish before the price moves above $0.079. However, the direction of the long-term trend will depend on whether the price breaks out of the symmetrical triangle. A breakout could bring highs near $0.110, while a drop could fall to $0.050.
