- DOGE has fragmented into a 539-day resistance line.
- It is trading inside the $0.15 resistance area.
- SHIB has broken out of a descending parallel channel.
Dogecoin’s (DOGE) price has broken out of a 539-day resistance line, suggesting its long-term correction is complete. Shiba Inu (SHIB) price broke out of its corrective pattern and may be in the early stages of a long-term up move.
DOGE Price Breaks Out From 539-Day Resistance
DOGE price had broken below a descending resistance line since hitting an all-time high of $0.738 in May 2021. The move lower led to a price low of $0.049 in June 2022. Subsequently, the Dogecoin price created a lower price wick and a possible double bottom pattern.
The pattern has also been combined with a bullish divergence on the weekly RSI (green line).
On October 27, the DOGE price broke the descending resistance line. At the time of the rupture, the line had been in service for 539 days. Breakouts of such long-term structures mean that a trend reversal has begun. Dogecoin’s price peaked at $0.158 before being rejected by the $0.150 resistance area (red icon). The RSI not only lent legitimacy to the breakout but also broke away from its bearish divergence (trendline). As a result, the DOGE price prediction weekly time frame is bullish. A weekly close above $0.15 areas is required to accelerate the rate of increase.
The short-term six-hour chart supports the possibility of a pullback. The main reason for this is the double top pattern (red symbols) and bearish divergence of the RSI (green line). If one occurs, the next support areas are $0.119 and $0.106, created by the 0.382 or 0.5 Fibonacci retracement support levels.
Can Shiba Inu Price Follow Lead Set by DOGE?
SHIB’s price broke out of a falling wedge on October 25 and hit a high of $0.000015 four days later. The wedge breakout combined with an RSI breakout and a move above 50 increases its validity. However, the SHIB price was rejected by the 0.618 Fib retracement resistance level (red icon) and has been falling since. The price has also decreased for the past 24 hours, creating a bearish candle. SHIB is currently attempting to validate the $0.000012 area as support. The area had acted as a resistance before the eruption.
If the upward move continues, there is minor resistance at $0.000021 and major resistance at $0.000027. A move higher towards the latter would represent a 130% surge, matching that of DOGE. When measured from October.
At least it would significantly exceed DOGE’s price increase. On the other hand, a daily close below the $0.000012 support area would invalidate this bullish SHIB price prediction.