Dogecoin Faces Resistance at $0.07, but This DOGE Indicator Confirms a ‘Buy Signal’

Dogecoin (DOGE) has seen renewed interest this week after breaking out from a multi-year descending triangle pattern on its weekly chart, according to crypto analyst Ali.

Ali pointed out that Dogecoin’s move higher confirms a buy signal from the TD Sequential indicator on the weekly timeframe. This adds to the bullish case for the meme-inspired cryptocurrency.

“Dogecoin shows promising signs, breaking out from a multi-year descending triangle on the $DOGE weekly chart! The confirmation of a buy signal from the TD Sequential indicator within this timeframe reinforces DOGE bullish outlook.” said Ali.

Dogecoin has rallied around 15% over the past week. However, the price is currently facing resistance around the $0.07 level, which aligns with its 200-day moving average.

According to Ali, Dogecoin needs to break above and hold the $0.07 level in order to confirm an uptrend. This would imply a shift from its long-term downtrend to a new bullish trend.

The relative strength index (RSI), a technical indicator measuring momentum, is currently around 64 for Dogecoin on the weekly chart. An RSI above 70 is considered overbought territory where the asset may be primed for a pullback.

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If Dogecoin can gain acceptance above its 200-day moving average, it could target further upside toward the next resistance around $0.08. However, failure to break above $0.07 could see the rally stall in the near-term. Traders will be closely watching whether the meme coin can build on its recent bullish momentum.

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Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.