Dogecoin has been stuck on a downward trend line for nearly three years, with occasional price spikes, but none too large. However, Thursday marked a key achievement for DOGE that may see it start to rally. Dogecoin reached a new yearly high of $0.106, breaking out from its descending resistance trend line.
The high was coincidentally reached on Dogecoin’s 10th anniversary. The Relative Strength Index (RSI) for DOGE is above 50 and increasing, both signs of a positive trend in momentum. Furthermore, the RSI has nearly moved above 70 (green icon), crossing into overbought territory.
Also Read: VanEck Predicts First Spot Bitcoin ETF Approval for Q1 2024
Will Dogecoin Rally after Reaching $0.10?
As Dogecoin gains momentum and successfully breaches various resistance levels, the prevailing question among investors centers on its potential to go as high as $1. The entire crypto market as a whole has been on the rise over the past month. While the latest prices of Dogecoin have been bearish, the trend for DOGE has been rather bullish.
Also Read: Why is Dogecoin up by 16% Today?
Now that DOGE has broken past the descending resistance trend line, if it can stay on an upward trajectory to break the ascending resistance line, DOGE can begin a big rally. The resistance area this year for DOGE has been at $0.095. A successful breakout for Dogecoin can lead to a 50% increase beyond $0.10 to the next resistance at $0.145.