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Dog-themed cryptocurrency Dogecoin (DOGE) may be on the verge of a major bullish breakout, according to a prediction by prominent crypto analyst Ali Martinez.
Ali, who has been closely monitoring Dogecoin's price movement in recent weeks, pointed out in a recent tweet that one of the two conditions necessary for Dogecoin to achieve a breakout has already been achieved.
In an earlier post made Sept. 19, Ali highlighted two key signals to watch as Dogecoin gears up for a bullish breakout: First, RSI breaking the descending trendline on the daily chart and second, Dogecoin surging past the $0.11 resistance.
Tomiwabold OlajideAccording to Ali, a condition has been met as the RSI has broken the descending trendline on the daily chart. In technical analysis, the RSI is often used to identify overbought or oversold conditions. A break above the descending trend line could indicate that a change in trend could be imminent. This signal might suggest that buyers may be gaining control, setting the stage for further price gains.
What's left?
While the RSI breakout is a promising sign, Ali stated that what's now left for a bullish breakout for the Dogecoin price is a clear break above the key resistance level at $0.11, which has proven to be challenging for Dogecoin in recent weeks.
As reported, Ali indicated in an earlier tweet that $0.11 stands as a critical level for a Dogecoin breakout given the enormous amount of coins held at this level.
Dogecoin surged this week following the Federal Reserve's long-anticipated rate cuts on Wednesday. Dogecoin rallied for five days in a row after beginning to increase last Tuesday. The surge encountered resistance at $0.11, indicating that this level is a significant barrier for the Dogecoin price.
A break above the $0.11 level would likely attract more buyers and could lead to a sharp upward move, pushing the price of DOGE toward new highs. In this scenario, Dogecoin might begin an up move at $0.12 and then to $0.14.
At the time of writing, Dogecoin was down 2.91% in the last 24 hours to $0.105. If the decline is sustained and Dogecoin breaks below the daily SMA 50 at $0.102, the price could retest the $0.09 support.
Arman Shirinyan
Gamza Khanzadaev
Alex Dovbnya