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Recent market dynamics suggest DOGE is on the verge of an epic breakout as cryptocurrencies continue to exhibit bullish price action in a seven-day timeframe. This bullish price action has seen DOGE break above a descending trendline that has defined the peak of rallies since April.
According to crypto analyst Ali Martinez, this is the first step in Dogecoin’s path to a sustained rally. All that’s left for the meme coin now is to break above the $0.11 price level, with technical indicators like the RSI now pointing to a bullish outlook.
Dogecoin Ready For Bullish Breakout
Dogecoin now finds itself at a critical juncture as the crypto market continues to play out after the recent Fed rate cut. This development and the expectation of further rate reductions in the coming months have sent ripples through financial markets, with cryptocurrencies largely benefiting. Crypto analyst Ali Martinez has been closely monitoring DOGE’s price action. Martinez recently provided two specific signals that could indicate when and how the meme coin might be poised for a major move.
His analysis, based on the Dogecoin/TetherUS (DOGE/USDT) 1-day candlestick chart, paints a picture of a market that has been largely bearish, with lower highs and lower lows since its April peak of $0.22. This bearish price structure has been mirrored by similar movements in the Relative Strength Index (RSI), a momentum oscillator that tracks the speed and magnitude of price changes. The RSI had been following a downward-sloping trendline, which acted as psychological resistance and prevented any sustained upward momentum.
Interestingly, recent inflows into the crypto industry have seen the indicator trending upwards for DOGE and breaking above the resistance. This break to the upside is a critical first step, signaling that momentum could be shifting in favor of the bulls. Martinez emphasized that this upward break in the RSI satisfies the initial technical condition for a broader Dogecoin price breakout. The only thing left now is for DOGE to break out above $0.11. Should DOGE succeed in breaching the $0.11 level, it may spark a rally that could redefine the coin’s trajectory for the remainder of the year.
#Dogecoin is gearing up for a bullish breakout! And one of the two conditions has been achieved:
✅The RSI broke the descending trendline on the daily chart.
⭕️Now we need $DOGE surging past the $0.11 resistance! https://t.co/XN6KPh0fRr pic.twitter.com/SbKS8hY3Ri
— Ali (@ali_charts) September 21, 2024
How Important Is $0.11?
The importance of the $0.11 price level for DOGE in the short term is mirrored in an on-chain metric from IntoTheBlock (ITB). According to ITB’s “In/Out of the Money Around Price” metric, DOGE is trading below a resistance point where 42,440 addresses hold 3.86 billion DOGE tokens at a maximum price of $0.11.
This is important because it shows there are thousands of addresses waiting to turn a profit if the meme coin can surpass $0.11. If DOGE manages to push above this resistance, some holders may choose to exit their positions and reinforce the resistance.
Source: IntoTheBlock
At the time of writing, DOGE is trading at $0.1065. Bulls have ample time to break above $0.11 in the last week of September before Uptober comes along. On the flip side, there exists the possibility of a reversal to retest support at $0.098.
Featured image created with Dall.E, chart from Tradingview.com
