Dogecoin (DOGE) price is trading below an important confluence with the $0.077-$0.080 resistance level. Whether it breaks down or gets rejected could determine the future price action.
Dogecoin price has declined below a long-term descending resistance line since hitting its all-time high at $0.739. The decline extended to the June 2022 low of $0.049.
While the price has rallied along an ascending support line, it has failed to break above the above long-term resistance. And the line caused two rejections (red mark).
Besides, DOGE price has now declined below the $0.080 resistance area. This is a very important horizontal level that has acted as both support and resistance intermittently since 2021.
Lastly, the weekly RSI is well below 50, which is indicating a bearish trend.
As a result, the longer term trend is still undecided. If Internet Meme Coin breaks out of the $0.080 area and the resistance line it will confirm that the trend is bullish. In that case, there could be an increase to $0.115.
On the other hand, a breakdown below the ascending support line would indicate that the trend is bearish. In that case, there could be a decline towards $0.050.
Dogecoin (DOGE) price trades at a make-or-break level
Technical analysis from the daily time frame offers a similarly indecisive outlook. DOGE price has declined below a short-term descending resistance line from November 2022. Most recently, the line caused a rejection at the year’s high on February 14 and March 18 (red icon), creating a bearish trend. candlestick and the beginning of the current downward movement. This coincides with the RSI rejection from the 50 line.
However, the price action also provides a bullish signal. This is plotted as a divergence (green circle) below the $0.068 horizontal support area. Such divergence often precedes an upward move.
Therefore, whether Dogecoin price breaks the resistance line or declines below the $0.068 area will instead determine the future trend. In case of a breakout, the price could move higher towards the previously mentioned $0.115 resistance area. However, if there is a breakdown, there could be a drop to at least $0.050. The next 24 hours could be crucial in determining which move will happen.
To conclude, the future Dogecoin price trend is still undecided. A break above $0.080 could catalyze a bullish move towards $0.115 while a break below $0.068 would lead to a decline towards $0.050.
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