As per crypto analyst Ali Charts, Dogecoin (DOGE) is showing signs of a potential breakout that could result in a price rally of up to 45%. However, his analysis also suggests that there might be short-term volatility before this upward movement occurs.
DOGE Pattern Points to a Potential Breakout
Ali Charts’ analysis, shared on X, reveals that Dogecoin is trading within a descending channel pattern. This pattern, characterized by declining highs and lows, has been guiding the meme coin’s price action for some time.
#Dogecoin keeps flirting with a bullish breakout, but patience might be key! The Stochastic RSI just had a bearish crossover, hinting at a potential short-term correction before the next move. pic.twitter.com/IZNsTJHksT
— Ali (@ali_charts) September 25, 2024
Currently, DOGE price is nearing the upper boundary of this channel, which often signals a breakout if momentum shifts in a positive direction.
Despite this, traders are advised to observe the market. The chart illustrates a possible 45% gain in price should the price break through this channel, but other indications, such as the Stochastic RSI, indicate that the path to higher prices may be complex.
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Stochastic RSI Shows Bearish Crossover
In addition to the descending channel, Ali’s analysis highlights the Stochastic RSI indicator. Currently displaying a bearish crossover, this momentum indicator usually indicates a slowing down of upward momentum. The crossover implies that before Dogecoin resumes its possible surge, it could have a temporary downturn.
Emphasizing the need of patience, Ali’s tweet cautioned traders about thinking through a little drop probability. The bearish crossover implies that before any consistent increase takes place, the price might have to consolidate.
For Dogecoin in the near term, the declining channel pattern plus the bearish Stochastic RSI crossover offers a mixed picture. Although there is possibility for a price surge, it might follow a fleeting period of instability.
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The post Dogecoin (DOGE) Price Could Rally by Up to 45% Soon, But There’s a Catch appeared first on CaptainAltcoin.
