September has been bullish for the cryptocurrency market. This is especially obvious when looking at memecoins, who have enjoyed a resurgence in the past three weeks, noted by considerable increases from Dogwifhat (WIF) and Shiba Inu (SHIB).
The lesser-known Baby Doge Coin (#BABYDOGE ) also increased rapidly, approaching a long-term resistance.
Letâs look at the BABYDOGE price movement and see if it can break out.
BABYDOGE Reaches Resistance
The BABYDOGE price has fallen under a descending resistance trend line since its all-time high of $0.00000000634 in January 2022. So far, it has made three unsuccessful breakout attempts (black icons).
After a 160% increase in the last three days, $1MBABYDOGE is nearing the resistance trend line again. During this movement, BABYDOGE cleared the $0.00000000167 horizontal area.
If it breaks out, the price of BABYDOGE will likely increase toward the all-time high region. The weekly Moving Average Convergence/Divergence (MACD) has turned bullish, crossing above 0.
So, the weekly time frame is leaning more toward an eventual breakout.
Possible Retracement
The daily BABYDOGE price analysis also supports an eventual breakout, though it implies that an initial retracement is likely. This is because of the wave count and indicator readings.
The wave count shows a completed A-B-C corrective structure starting in March 2024. Then, BABYDOGE followed it by beginning a new five-wave increase (white). If this is the case, it is currently at the top of wave three.
Since wave three has already extended, and the MACD generates a bearish divergence (green), a local top is likely in place.
If so, the meme coin could fall to the $0.00000000180 Fibonacci support and complete wave four. Then, the fifth and final wave is likely to cause a breakout.
On the other hand, closing below the 0.618 Fibonacci retracement support level at $0.00000000157 will put the bullish count at risk and could lead to new lows
BABYDOGE Breakout Ahead
After an impressive increase over the past three weeks, the BABYDOGE price attempts to break out from a long-term descending resistance trend line. The shorter-term outlook suggests this breakout will be successful, though an initial retracement could occur prior.
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