Over the past few days, Dogecoin has shown impressive strength by trading above the bearish zone, but the bulls are struggling to sustain the upward momentum as the strength seems to be diminishing, indicating that there could be a significant bearish reversal on the horizon. Nonetheless, it is anticipated that the price of DOGE will continue to stay above the bearish zone and potentially reach higher targets throughout the remainder of 2023.
As the price of DOGE continues to rise, it is currently being tested at a key resistance level of $0.069 that holds significance due to a previous breakout from a dynamic daily resistance and signifies a possible shift in market sentiment, with buyers gradually increasing their influence and surpassing the previous barrier.
Given the recent increase in buying pressure, there is now a potential for further upward movement to occur.
The chart above shows a double-bottom pattern in the DOGE price, with two consecutive lows that are approximately equal or separated by a peak. This pattern is typically observed when a market rally is trying to reverse into a bullish direction, suggesting that the ongoing downtrend may soon conclude and be followed by an upward trend.
Hence, if the price of Dogecoin successfully breaks out of the double bottom pattern and establishes the previously breached resistance as a new level of support, it could present a favorable opportunity for long positions. The price movements and technical indicators indicate that the bulls are gaining control and are expected to propel the DOGE price upwards in the near future.
