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Dogecoin (DOGE), the biggest meme coin in terms of market capitalization, is on the verge of one of the biggest price breakouts in history. While its price has remained stuck in an extended consolidation phase, certain bullish signals are emerging about the forthcoming price rally. However, there still seem to be multiple hurdles for the meme coin.
Renowned crypto analyst Ali Martinez took to X (formerly Twitter) to share an interesting analysis of the DOGE price. He explained that the meme coin is continuing to "flirt" with a bullish price breakout. However, he warned traders that patience is required for this potential rally to materialize.
The analysis revealed that Dogecoin’s key indicator, Stochastic RSI, just formed a bearish crossover. This chart formation typically results in a price correction in the short term. The good thing is that it will be a brief correction, and it will be followed by the next move from Dogecoin, which will potentially be the much anticipated breakout.
Dogecoin potential rally
Martinez shared a price chart for the meme coin, showing a clear picture of this outlook. The chart reveals that Dogecoin is forming a falling wedge, and it mentioned that a potential 45% price increase can be achieved due to this. If it happens as portrayed, it will be among the biggest price breakouts for Dogecoin.
However, the same chart also validates the bearish crossover of the Stochastic RSI. This formation is likely going to put bearish pressure on the market, resulting in a possible price decline. As mentioned above, it will be for a short term, and it can also be seen as a healthy correction before a mega rally.
Currently, Dogecoin is trading at $0.109 after a minor increase of 0.13% in the last 24 hours. It has been moving sideways for more than a month, and the sentiment has not shifted yet. However, Martinez’s analysis suggests that things may change now and a potential rally may be in the cards.
Gamza Khanzadaev
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov
U.Today Editorial Team