Popular meme coin Dogecoin (DOGE) has broken out above a key long-term resistance level, potentially signaling a bullish shift in the asset’s overall trend, according to crypto analyst Rekt Capital.
In a recent tweet, Rekt Capital noted that Dogecoin had broken out above the top resistance line of its multi-month channel after a year of unsuccessful breakout attempts.
Unlike previous breakout attempts where DOGE would wick above resistance and get rejected back into the channel, this time DOGE closed the weekly candle above the level.
Closing above resistance rather than just a temporary spike indicates buyers have genuinely stepped back in and overtaken sellers. Dogecoin is now trying to confirm the breakout by retesting the resistance line as support.
Holding above this important technical area would confirm the shift to an uptrend for Dogecoin after months of rangebound price action. Rekt Capital believes Dogecoin has a good chance of establishing the former resistance as a new floor.
The meme coin has suffered from declining popularity and interest over the past year compared to the frenzied buying mania of early 2021. However, Dogecoin still retains a loyal community known for coordinated pumps and rallies.
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This technical breakout signals renewed momentum, and possible fundamental catalysts like exchange listings or prominent endorsements could be on the horizon.
The coming weeks will determine if Dogecoin can sustain itself above its prior channel resistance. But the technicals and improving sentiment hint this meme coin may have more bark left. Dogecoin’s resurgence could be imminent if the breakout is confirmed.
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