Dogecoin (DOGE) price broke above a 539-day descending resistance line, signaling the end of its long-term correction. Shiba Inu (SHIB) price has broken out of its own corrective pattern and may be in the initial phase of a long-term bullish move.
Dogecoin price breaks above 539-day resistance
The price of the DOGE crypto has been declining below a descending resistance line since its all-time high of $0.738 reached in May 2021. The decline move led to a low price of $0.049 in June 2022.
Then, price action generated a long wick lower as well as a possible double bottom pattern. This pattern also combined with a bullish divergence in the weekly RSI (green line).
On October 27, the DOGE broke through this descending resistance line. At the time of this breakthrough, the line had been in place for 539 days. Price crossings above such long-term structures signal the start of a trend reversal.
The Dogecoin price thus reached a high of $0.158 before being rejected by the resistance zone of 0.15 (red arrow).
Additionally, the RSI has broken through its own bearish divergence (trendline), which further reinforces the legitimacy of the price breakout.
Thus, the outlook presented by the weekly DOGE price data is bullish. A close above the $0.15 area would be needed for the price to accelerate its rise.
The six-hour chart supports the possibility of a price retracement. This is mainly due to the presence of a double top structure (red arrows) as well as a bullish divergence in the RSI (green line).
In this case, the closest areas of support would be at $0.119 and $0.106, created by the respective 0.382 and 0.5 Fibonacci support retracements.
Can the Shiba Inu course keep pace?
The price of the SHIB crypto broke through a falling wedge pattern on October 25 and hit a high of $0.000015 four days later. The passage above this wedge was combined with an advance of the RSI as well as its passage above 50, which makes it all the more credible.
However, Shiba Inu suffered a rejection at the 0.618 Fibonacci retracement resistance zone (red arrow) and has since been in decline. The price has also declined over the past 24 hours, forming a bearish candlestick.
Currently, the SHIB is looking to validate the $0.000012 area as support. Prior to the price advance, this area was providing resistance.
If the upside move continues, there is minor resistance at $0.000021 and major resistance at $0.000027. An upside move towards major resistance would equate to a 130% upside, which would be similar to DOGE. If measured from the October low, this growth would even considerably exceed that of the price of Dogecoin.
On the contrary, a weekly close below the $0.000012 support zone would negate the bullish SHIB prediction.
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