Dogecoin (DOGE) Price Wants a Breakout, But This May Prevent it from Doing So!
The post Dogecoin (DOGE) Price Wants a Breakout, But This May Prevent it from Doing So! appeared first on Coinpedia Fintech News
Dogecoin has displayed significant strength in the past few days, trading above the bearish zone. The bulls are trying hard to maintain a firm upswing, but the strength appears to have waned, due to which a significant bearish reversal could be imminent. However, the DOGE price is believed to remain above the bearish zone and test the upper targets for the rest of 2023.
With the recent upswing, the price is currently testing significant resistance at $0.069. This level can be considered important because the DOGE price witnessed a breakout from the dynamic daily resistance, which indicates a potential shift in market sentiment. The buyers are slowly gaining strength and pushing the prices up, surpassing the previous barrier.
Now that the buying pressure has increased to some extent, the possibility of a further upward movement emerges.
As seen in the above chart, the DOGE price has formed a double-bottom pattern, which is characterized by two consecutive lows that are roughly equal or separated by a peak in between. These patterns are usually seen when the rally is attempting a bullish reversal, indicating that the downtrend may soon come to an end, sparking a new uptrend.
Therefore, if the Dogecoin price breaks out of the double bottom formation and manages to retest the previously broken resistance as new support, a favourable opportunity for the long positions may be opened. The price actions and the technicals suggest that the bulls are gaining control and are likely to dive the DOGE price higher in the coming days.
