Is a 100% Surge to $0.15 Attainable?

The DOGE price has cleared a significant long-term resistance area. But, the failure to sustain the increase casts doubt on the bullish trend reversal.

Additionally, the short-term movement is inconclusive. So, it is still possible that the breakout was illegitimate.

Can Dogecoin Price Begin Increase?

The time frame technical analysis reveals that the DOGE price experienced a downward trend under a descending resistance line since May 2021, following its peak at $0.739. This decline led to a low of $0.049 (green icon) in June 2022.

Subsequently, DOGE began recovering and trading above the $0.060 horizontal support level. After multiple unsuccessful attempts over six months, the DOGE price eventually broke through the resistance line on July 15.

This resistance line had been in place for an impressive duration of 805 days. A similar pattern is observed in the DOGE/BTC pair.

Breakouts from prolonged patterns like this often indicate significant price increases, signaling the conclusion of the previous trend. It’s worth noting that this specific breakout might be attributed to Elon Musk’s Twitter rebranding.

However, it’s important to highlight that the anticipated price rise has not yet come to fruition.

The analysis of the weekly Relative Strength Index (RSI) reading does not yield a definite outcome. The RSI serves as a momentum indicator traders use to gauge whether a market is excessively bought or sold, determining when to buy or sell an asset.

When the RSI reading surpasses 50 and trends upward, it implies the advantage lies with the bullish sentiment, while readings below 50 signify the opposite. Over the last two weeks (green circle), the RSI has consistently hovered around the 50 mark.

A robust rebound from this threshold will confirm the reversal in the bullish trend. On the other hand, a clear decline below it will suggest that the breakout was not genuine.

DOGE Price Prediction: Is Trend Bullish or Bearish?

The technical analysis of the daily timeframe presents a mixed perspective. This is primarily due to conflicting price movements observed throughout this year.

On the positive side, there was a bullish development when the DOGE price surpassed a descending resistance line on July 24. This line had been in place for a 265-day period before the breakout.

However, the price was unable to sustain this upward momentum. Instead, it retraced to confirm the line as a support level on August 4 (green icon).

Although this could be interpreted as a common pattern of breaking out and then retesting, it’s important to note that the price action since the lows in June has been confined within an ascending parallel channel.

Such channels typically contain corrective price movements, suggesting that a probable future scenario involves a potential breakdown from this channel.

Should this scenario materialize, the meme coin would dip below the resistance line, essentially invalidating the earlier breakout. In such a scenario, a notable 25% decline to the June lows at $0.055 becomes the most plausible prediction for the future price trend.

Conversely, a successful breakout from this channel would validate the earlier long-term breakout and might trigger a substantial 100% increase, targeting the highs from November 2022, situated around $0.150.

The Relative Strength Index (RSI) does not contribute to confirming the prevailing trend. Despite the indicator being above 50, it doesn’t strongly indicate a bullish trend. Instead, it hovers just marginally above this line, suggesting a neutral trend.

In summary, while the long-term trajectory of Dogecoin’s price appears bullish, the short-term direction remains uncertain. If the channel experiences a breakdown, the bearish trend will persist; however, a breakout from the channel would validate a long-term bullish trend reversal, potentially leading to a substantial 100% surge in price.

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