Dogecoin: How to map the potential of this breakout
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
After reversing from the $0.3261-level, Dogecoin (DOGE) was on a long-term downslide for over four months. This bearish phase saw a down-channel trajectory (white).
From here on, the down-channel breakout could propel further recovery towards the $0.15-$0.16 zone. Then, it would likely face resistance near its 200 EMA pullback before the bulls gather more force to alter its long-term downtrend.
At press time, DOGE was trading at $0.1526, up by 9.71% in the last 24 hours.
Source: TradingView, DOGE/USD
Since its October highs, the alt has declined by over 70% as it plunged towards its ten-month low on 24 February. During this fall, the upper trendline of the down-channel was a strong selling point, one that shunned most bullish recovery attempts.
The downfall led the altcoin to lose the crucial $0.14-mark POC, one that offered the highest liquidity in the last three months. The latest recovery saw a falling wedge breakout after the alt reversed from its long-term $0.11 support. As a result, the price jumped to its 20/50 EMA and reclaimed the $0.14-support.
With the Supertrend finally entering the green zone, the bulls would aim to steer the current rally towards its 200 EMA to challenge its long-term trend. On its way, the $0.15-mark could pose barriers in the short term.
Thus, bulls still need to ramp up the current volumes to trigger a sustained rally. Any retracements would continue to find support near the $0.14-level.
Source: TradingView, DOGE/USD
The RSI pictured solid recovery in the last ten days from the 33-base. Now that it is heading into the overbought territory, a potential reversal
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