- Dogecoin shows upward dynamics after breaking through short-term barrier, still trading within long-range corrective pattern.
- Despite rejections, daily RSI signals bullish direction; overcoming $0.088 barrier could trigger significant rise towards $0.102.
Over the past two months, Dogecoin (DOGE) has shown a consolidation phase, but has recently started to exhibit an upward dynamic. DOGE has broken through a short-term barrier, but continues to trade within a long-range corrective pattern.
Technical analysis on the daily timeframe reveals that DOGE has been trading within a parallel ascending channel since June 2023. The asset made a breakthrough in December, marking a new yearly high of $0.107.
However, DOGEÂ price has since declined, facing the channel as a barrier twice in January 2024. Despite these rejections, DOGE continues to trade at the top of the pattern.
The daily Relative Strength Index (RSI) has adopted a bullish direction. This indicator is employed by traders to determine whether a market is overvalued or undervalued, and whether to accumulate or dump an asset. Currently, the indicator has risen above 50, signaling a bullish direction.
For DOGE’s immediate future, six-hour analysis supports the ongoing rebound and suggests it will persist. This is because DOGE price broke a downtrend barrier on February 9 and validated it as support four days later. This behavior is typical following advances and usually precedes trend continuation.
The bounce also receives support from the RSI, which increased above 50 once the Dogecoin price bounced off the trendline.
However, it still faces a solid horizontal barrier at $0.088, which aligns with the long-term channel resistance line.
If DOGE manages to break above this barrier, it would confirm its change in direction and could trigger a 25% rally towards the next barrier at $0.102.
Despite bullish expectations for the DOGE price, a close below $0.078 could trigger a 20% decline towards the nearest support at $0.066. This analysis indicates that Dogecoin is at a turning point, with the potential for significant gains if it clears current resistance hurdles, keeping investors interested in the future.
