Dogecoin (DOGE) is breaking out of a long-term bullish pattern that will confirm that a bullish trend reversal has begun.
DOGE has been falling since reaching an all-time high of $0.74 in May 2021. The downtrend so far has resulted in a June low of $0.049.
For the past 441 days, the decline has been contained within a falling wedge, which is considered a bullish pattern. Currently, Dogecoin is trying to break out of this wedge. If successful, the next nearest resistance area will be $0.165.
Interestingly, the weekly RSI is also in the process of breaking out from its descending resistance line. If it does so successfully and then retraces the 50 line, it will confirm that a bullish reversal has begun.
DOGE breakout in progress
Daily chart support for readings on the weekly time frame. It indicated that Dogecoin had breached the resistance at $0.077 on Aug. 14 and validated it as support the next day.
In addition, the daily RSI has decisively broken through 50. Therefore, this suggests that the price may also break out of the long-term wedge.
Crypto trader @Altstreetbet tweeted a graph of DOGE , saying that prices have begun to rise in the third wave of the long-term.
Most likely long-term counts indicate that DOGE has completed an ABC correction structure from its all-time high. In it, the C wave develops to end diagonally, thus forming a descending wedge.
Wavelet counts are given in black.
As for the short-term count, the most likely scenario suggests that Dogecoin is in the third wave of a five-wave upward movement. The sub-wave count is given in yellow, also indicating that the price is in sub-wave three.
So, if the count is correct, the growth rate is expected to pick up soon.
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