Dogecoin (DOGE) gained attention as key indicators suggest the coin is preparing for a potential price rally. Crypto analyst Ali Martinez has highlighted specific signs that point toward a bullish breakout for DOGE.
Consequently, according to Martinez, traders looking for opportunities in the Dogecoin market should monitor two important signals.
Dogecoin Bullish Breakout Signals. Source: @ali_charts
One of the major signals involves the Relative Strength Index (RSI), which indicates a critical trendline break. Additionally, Dogecoin is nearing a resistance level at $0.11.
If DOGE successfully surpasses this mark, its price could increase from its current level of $0.10470 to potentially $0.14500— a 41% rise.
RSI Breaks Trendline, Signaling Potential Upward Momentum
Notably, Martinez’s first key signal involves the RSI breaking its descending trendline on Dogecoin’s daily chart. The RSI is a crucial metric that measures the speed and change of price movements. In fact, when the RSI breaks a trendline, it often signals a potential shift in market sentiment from bearish to bullish.
Traders utilize this signal to determine if buying pressure increases, which could lead to a price rally.
Consequently, this break in the RSI trendline suggests that DOGE may enter a phase where further gains are likely. Therefore, investors and traders should closely monitor how this RSI movement aligns with other technical indicators.
Dogecoin Faces $0.11 Resistance Level
Martinez’s next major point focuses on DOGE’s proximity to the $0.11 resistance level, in particular. Recently, this level has acted as a barrier, preventing the memecoin from moving higher. Should a breakout occur above this resistance, it could also pave the way for further price increases.
Dogecoin Market Overview. Source: CoinMarketCap
Currently, Dogecoin is trading at $0.1045, having recently rebounded from a dip to $0.104. If DOGE surpasses the $0.105 mark, it might see a rapid ascent toward $0.14500, potentially reflecting a significant 38.75% gain.
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