The Dogecoin (DOGE) price is trading below an important confluence of resistances at $0.077-$0.080. Whether it breaks out or gets rejected could determine the future price trend.

The Dogecoin price has fallen under a long-term descending resistance line since reaching its all-time high price of $0.739.  The decrease led to a low of $0.049 in June 2022. 

While the price has increased alongside an ascending support line since, it failed to break out from the aforementioned long-term resistance. And the line caused two rejections (red icons). 

Moreover, the DOGE price has now fallen below the $0.080 resistance area. This is a very important horizontal level that has intermittently acted as both support and resistance since 2021. 

Finally, the weekly RSI is just below 50, a sign of a bearish trend. 

As a result, the long-term trend is still undetermined. If the internet meme coin breaks out from the $0.080 area and the resistance line would confirm that the trend is bullish. In that case, an increase to $0.115 could follow. 

On the other hand, a breakdown below the ascending support line would indicate that the trend is bearish instead. In that case, a fall toward $0.050 could follow.

The technical analysis from the daily time frame offers a similarly undecided outlook. The DOGE price has fallen under a shorter-term descending resistance line since November 2022. More recently, the line caused a rejection on February 14, at the highest price of the year, and on March 18 (red icon), creating a bearish engulfing candlestick and initiating the current downward movement. This also coincided with an RSI rejection from the 50 line. 

However, the price action also provides a bullish sign. This is given in the form of a deviation (green circle) below the $0.068 horizontal support area. Such deviations often precede upward movements. 

Therefore, whether the Dogecoin price breaks out from the resistance line or fall below the $0.068 area instead will likely determine the future trend. In case of a breakout, the price could increase toward the previously outlined $0.115 resistance area. However, if a breakdown occurs, a fall toward at least $0.050 could follow. The next 24 hours could be crucial in determining which move will occur.

To conclude, the future Dogecoin price trend is still undetermined. A breakout above $0.080 could catalyze a sharp upward movement toward $0.115 while a breakdown below $0.068 would lead to a fall toward $0.050.

For BeInCrypto’s latest crypto market analysis, click here.

The post What’s Causing Dogecoin (DOGE) Price to Lag Behind Bullish Crypto Market? appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

213 +