Is Dogecoin on The verge For A Critical Breakout?

• Bulls require thunder to break out of the resistance line.
• What do 399 days of consolidation inform about the participants of the market?
• The sideways trend in the token is about to end.

Dogecoin Price Analysis

What started as a joke in 2013 became one of the hottest investments in 2021. The Dogecoin-Open-source digital currency was designed by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia. It was forked from Litecoin in December 2013. Based on a dog meme, Dogecoin was designed as a fun, lighthearted cryptocurrency that would appeal to a broader audience than the core Bitcoin audience. 

Dogecoin PRICE ANALYSIS (WEEKLY)

The price on the weekly chart is running out of real estate. The apex of the triangle formation is closer. The price has to act sooner than later. Bulls need some kind of thunder to break out of one year-long downward-sloping resistance line. 

Are bears losing grip? With such lower volumes on the weekly time frame, the selling pressure is ending. However, confirmation can only be taken once the price breaks out of key resistance and support levels. 

A good momentum can be built on either side of the breakout since the price has been in 400 days of sideways action. A breakout above the resistance level of $0.0732 will confirm it as a consolidation. If the price breaks down to the immediate support level of $0.0533, it will establish it as a distribution phase.

Technical analysis relies on forecasting future price movements by examining the historical behavior of a stock or token. Concerning altcoins, such as Dogecoin, their trends are influenced by Bitcoin dominance, which must either decrease or consolidate sideways. In contrast, bitcoin must maintain a position above crucial support levels. Consequently, traders and investors should closely monitor both bitcoin dominance and bitcoin’s performance for insights into potential price developments.

Key technical levels

• Resistance: $0.0904
• Support: $0.0504

DOGE PRICE ANALYSIS (DAILY)

The price on a daily time frame is down, as the price is trading in a falling wedge. It is a corrective fall. However, the probability of an upside breakout from falling wedges is higher than that of a flight on the downside. 

Key Technical Levels

Suppose bulls overpower bears and take the price past the resistance level of $0.7460. The next target of around $0.8238 will open. On the other hand, if bears take the cost down and break the support level of $0.0599. The price will take support around $0.0536.