Dogecoin (DOGE) price is showing signs of a bullish reversal in the weekly time frame. Despite this, another short-term downward movement is expected prior to a long-term reversal.
DOGE price has been falling underneath a descending resistance line since reaching an all-time highest price of $0.073 in May 2021.
Including the high, the line has been validated six times so far (red icons), most recently in Oct. Lines get weaker each time they are touched, so an eventual breakout from this line seems likely.
The downward movement has so far led to a DOGE price low of $0.049 in June 2022. This amounted to a decrease of 93% since the aforementioned all-time high.
The price bounced after the low, created a long lower wick (green arrow) and validated the $0.051 horizontal area as support. This is a crucial horizontal area that provided support in the beginning of the upward movement in 2021.
More importantly, the weekly RSI has generated bullish divergence for the first time in history
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