Dogecoin (DOGE) Breaks 6-Month Record: Price Charts Signal Incoming Decline, But There’s a Catch
The price of Dogecoin has surged, breaking a six-month record with an increase of over 40% in October alone, marking its first significant rise since April.
The price jumped from approximately $0.10161 to around $0.14038. However, in the past three days, Dogecoin’s price has been consolidating, indicating potential challenges to the bullish momentum.
This consolidation has established a support level at approximately $0.13701, and a close below this critical threshold could signal a bearish correction.
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The Relative Strength Index (RSI) has also shown a downward trend over the last three days, decreasing from around 79 to 70 at the time of writing. Although the RSI remains in the overbought zone, this suggests that further price declines might be forthcoming.
AltFINS Remains Bullish
Despite the potential for a price retracement, analysts suggest that such a decline may be short-lived due to several support levels that could stabilize the price. Crypto analytics firm AltFINS has provided an analysis indicating a bullish outlook for Dogecoin in the short, medium, and long term.
Their analysis highlights that the price has broken out from a Channel Up pattern and may target a revisit to $0.17. However, they caution that the asset is becoming overbought, with the RSI exceeding 70.
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Source: altFINS – Start using it today
AltFINS recommends that traders consider buying near the channel support, with potential upside back to the $0.126 to $0.140 resistance zone and a stop-loss set at $0.093. They emphasize the importance of learning to trade breakouts and managing risk effectively.
The analysis also notes the current trading pattern, suggesting that traders who anticipate the price will remain within its channel can initiate trades based on fluctuations within the channel’s trendlines. A breakout could lead to rapid price movements in the direction of the breakout.
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Show more +In terms of trends, the short-term outlook is categorized as strong up, while the medium-term trend also shows strength. However, the long-term trend remains down. The momentum is considered bullish but may be inflecting, as indicated by the declining MACD Histogram bars, which suggest that momentum could be nearing a downswing.
Regarding support and resistance, the nearest support zone is set at $0.10, followed by $0.075, while the nearest resistance zone is identified at $0.17.
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