The price of Dogecoin (DOGE) has increased significantly in the last five days. However, this has not yet confirmed its bullish reversal.
DOGE price has followed a long-term ascending support line since June 2022. When combined with the resistance line that started in December of the same year, it forms a symmetrical triangle, which is considered a neutral pattern.
On March 10, the price bounced off the support line (green icon), after briefly declining to a new yearly low. Dogecoin, like other cryptocurrencies, has since risen, forming several consecutive bullish candlesticks.
However, the daily RSI is still below 50. Moreover, the price failed to reach the $0.079 resistance area today. As a result, the trend cannot yet be considered bullish.
Dogecoin (DOGE) Price Struggles to Confirm the Trend
Technical analysis of the six-hour chart shows that since the beginning of February, DOGE price has broken below a descending resistance line. More recently, the line caused a rejection on March 13 (red icon), ending the reversal that started after the new yearly low.
The six-hours chart reiterates the importance of the $0.079 resistance area. However, this does not help determine whether the digital currency will reach that point and potentially break even. While the RSI is above 50, it has not generated any bullish divergence yet. Therefore, both breakout and rejection remain possible.
Therefore, the Dogecoin price action is still undecided. As long as the price does not move above $0.079, the short-term trend can be considered bearish. However, the direction of the long-term trend will be determined by whether the price breaks above or below its symmetrical triangle. A breakout could lead to a high near $0.110, while there could be a downside break towards $0.050.
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