The Dogecoin (DOGE) price has been retracing after a rapid breakout on July 6. It has reached a likely reversal level and could continue its upward trend in the near future.

Retracement After the Breakout

On July 6, the DOGE price initiated a rapid upward move that caused it to break out from a descending resistance line that had been in place since October 2019. It subsequently increased by 135% in two days. However, the price has been declining since, losing the majority of the gains made during the breakout.

The price has retraced almost all the way to the previous descending resistance line, finding support above the 50 and 200-day moving averages (MA), which have made a bullish cross.

This would be a likely level for the price to resume its upward move.

Dogecoin Breakout
DOGE Chart By Tradingview

Continuation of the Upward Move

Cryptocurrency trader @Mesawine1 stated that DOGE has completed its retracement and is now ready to move upwards.

After the massive rally #doge retraced deep and has since made a small impulse up and retraced back to the golden pocket.

Perfect setup for a next impulse up. It’s a trade I must take.

DOGE
Source: Twitter

After the breakout, the price has retraced all the way to the 0.786 Fib level and created a higher low since. In addition, even though the slope of the descending resistance line is difficult to accurately determine (due to numerous wicks), the price has broken out from even the most gradual slope.

Therefore, it is likely that DOGE will continue moving upwards.

DOGE Retracement
DOGE Chart By Tradingview

Future DOGE Targets

The weekly chart reveals that the closest resistance area is found at 65 satoshis. The price barely missed this level during the recent rally but should touch it on the following one. If successful in breaking out, the price could increase all the way to 85 satoshis.

DOGE Long-Term
DOGE Chart By Tradingview

To conclude, DOGE has reached an expected reversal level and is likely to resume its upward momentum.

The post DOGE Reaches Support, Could Soon Resume Its Upward Movement appeared first on BeInCrypto.

Source: Be In Crypto