Dogecoin faced a setback last week in its attempted upside breakout, according to crypto analyst Rekt Capital. In a recent tweet, he highlighted that Dogecoin failed to close its weekly candle above the key long-term resistance of its channel top.
Historically, when Dogecoin sees a weekly close beneath the channel top after attempting to break out above it, some downside often follows in subsequent weeks. This makes last week’s candle close discouraging for Dogecoin bulls eager to see a sustained push higher.
However, Rekt Capital notes that there could still be some hope for Dogecoin if it can maintain the price levels it reached last week. If Dogecoin can now hold those weekly highs and reclaim the channel top as support, it may have another chance at powering above that key long-term overhead barrier.
But Rekt Capital makes clear that the unconvincing candle close is a complication that delays the upside breakout for Dogecoin until it can strengthen its technical posture.
At best, Dogecoin appears to have reached an indecision point of formidable long-term resistance. It needs to either gather itself through consolidation or risk rolling over if it is unable to recapture those highs. Relying on Dogecoin to break out sustainably after this setback could be highly speculative.
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For now, Rekt Capital’s analysis suggests traders exercise caution with bullish Dogecoin bets until it manages to close firmly above its channel top hurdle. Until then, its technical profile indicates lingering risks of another leg lower rather than smooth sailing to the upside.
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