Dogecoin (DOGE) price may break out of a long-term descending resistance line soon. Nonetheless, the short-term move ahead of the eventual breakout is still inconclusive.

DOGE price has been falling below a descending resistance line since hitting an all-time high of $0.739 in May 2021. The downward move has so far led to a low of $0.049 in June 2022. Initially, it looked like the decline had caused a breakout below the $0.056 horizontal support zone. However, the price rebounded and created a long lower wick, validating the area as support (green circle).

So far, the line has been validated five times (red icons), increasing its legitimacy. Due to the high number of contacts and the long period the line is in place, a break above it would likely cause an acceleration of the upward movement of the Dogecoin price. It should be noted that the resistance line is visible only in the logarithmic chart.

The weekly RSI reading supports the possibility of a breakout. The indicator has been generating bullish divergence (green line) since early June. The divergence trendline is still intact.

For these reasons, a breakout in DOGE prices seems likely. If this happens, the price of Dogecoin could rise rapidly towards the nearest resistance level at $0.16.

Dogecoin price consolidates at $0.06

Despite DOGE’s bullish weekly price prediction, the technical analysis readings on shorter time frames are still unclear.

The daily timeframe confirms the legitimacy of the $0.06 zone. With the exception of two gaps, the zone has served as support since June 15th. Currently, the DOGE price is trading inside the zone. Thus, it is not clear whether the zone is acting as support or resistance.

Additionally, the daily RSI is moving freely above and below the 50 line. This could be a sign of an undetermined trend and aligns with the price action.

Finally, the two-hour chart shows that Dogecoin price is trading inside a symmetrical triangle. The symmetrical triangle is considered a neutral pattern, fitting well with inconclusive price action and technical indicator readings.

Accordingly, whether DOGE price breaks out or descends from the triangle will likely determine the direction of the short-term trend.

Long-term uptrend while short-term one is indefinite

To conclude, the long-term price prediction for Dogecoin is bullish due to the weekly RSI bullish divergence and multiple attempts to break the long-term resistance line. Following these readings, an eventual breakout of the line is expected.

However, the direction of the short-term movement is still undetermined. A weekly price closing below $0.06 would invalidate the bullish assumption and indicate that new lows are expected instead.

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