Recent market dynamics suggest that Dogecoin (DOGE), the Shiba Inu-inspired coin with the largest market cap, is on the verge of an epic breakout as the tailwinds of the global monetary easing cycle continue to push crypto markets higher.
While technical indicators like the RSI now point to a bullish outlook for Dogecoin, the meme coin still appears to be facing some hurdles.
DOGE RSI Indicator Triggers Bullish Wave
Now, Dogecoin finds itself at a critical juncture as the cryptocurrency market continues to deteriorate after China overnight joined all other major global economies in easing monetary policy to combat a slowing economy. This development and the expectation of further interest rate cuts in the coming months have sent waves of volatility through financial markets, with cryptocurrencies benefiting greatly.
Popular cryptocurrency analyst Ali Martinez has been keeping a close eye on DOGE’s price action. Martinez recently shared a specific signal that could indicate the cryptocurrency is poised for a major bullish move.
In a post on September 25, he noted that Dogecoin is still flirting with a price spike. But the expert warned traders that patience is needed for this potential meteoric rise to happen.
According to Martinez's analysis, Dogecoin's stochastic RSI has formed a bearish crossover, indicating that a pullback may occur in the near term before any potential breakout.
The accompanying chart shows Dogecoin printing a falling wedge. The chart suggests that Dogecoin breaking out of the falling wedge could pave the way for a 45% price surge. If this happens, it would be one of the largest price surges in Dogecoin history.
#Dogecoin continues to flirt with a bullish breakout, but patience may be key! The stochastic RSI just saw a bearish crossover, indicating a potential short-term correction before the next move. pic.twitter.com/IZNsTJHksT
— Ali (@ali_charts) September 25, 2024
Dogecoin price breaks $0.11 level is the final bullish signal
While the RSI breakout is a promising sign, Martinez noted a few days ago that what remains before a massive DOGE pump is for bulls to push prices above the crucial $0.11 resistance area, which has capped gains in recent weeks.
The expert explained in a previous post that the $0.11 level is key to Dogecoin’s success, given the massive amount of coins held at this level. A decisive break above this area could spark a massive rally that could set the course for the most popular coin for the rest of 2024.
Dogecoin price is up 0.5% in the past 24 hours to trade at $0.1096 at press time. Bulls have enough time to break the $0.11 level in the last week of September before the October bull run starts and Dogecoin price could reach $0.
A $1 price would represent a 36% increase from Dogecoin’s all-time high of $0.73 in May 2021 and an 812% increase from today’s price. However, it remains to be seen whether the meme coin will achieve its $1 price target.
