Dogecoin (DOGE) price is trading within a short-term neutral pattern but showing long-term bullish signs.
DOGE price has been rising along with an ascending support line since June 2022. Since November of the same year, the price has created a descending resistance line. Combined, these lines form a symmetrical triangle, which is considered a neutral pattern.
On April 3, the price broke out of the triangle and reached a high of $0.105. However, it was rejected at 0.382 Fibonacci retracement resistance level (white) and fell sharply over the next 24 hours. On April 7, the price of Dogecoin fell back inside the triangle boundary, indicating that the previous breakout was illegal. However, the daily RSI remains above 50, which is a sign of a bullish trend.
As a result, it is possible that another eruption will eventually occur.
A possible reason for the rejection was the fact that Tesla CEO Elon Musk returned the Twitter logo to the former Bluebird after replacing the previous one with an internet meme currency.
Long-Term Outlook Supports Dogecoin (DOGE) Price Increase
While the technical analysis from the daily time frame does not provide a clear direction of the trend, the weekly analysis is bullish.
The main reason for this is the breakout from the 539-day descending resistance line. Penetrations from such long-term structures usually result in significant increases.
Although DOGE created a long upper wick last week (red symbol), the weekly RSI is still above 50. Therefore, another attempt to reach the $0.128 resistance area is expected.
In the event of a breakout from it, DOGE price could rise to $0.275. However, if it continues lower, DOGE could drop to the $0.055 horizontal support area.
In conclusion, the most likely DOGE price forecast is the final breakout of the short-term pattern and an increase towards $0.128 in the long-term.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.