The price of Dogecoin (DOGE) has broken out of a six-month downtrend. The shift highlights key technical indicators that show bullish momentum may be building for the cryptocurrency.
Over the past day, DOGE’s price has surged by 7.44%, while its trading volume has increased by 79.08%. At press time, DOGE is trading at $0.1176.
DOGE Chart Analysis: Downtrend Breakout Signals Momentum Shift. Mikybull Crypto’s tweet confirms that Dogecoin has broken out of a six-month-long downtrend line. The Dogecoin chart shows that the coin has broken out of resistance, indicating a possible reversal in the bearish trend. Mikybull’s Dogecoin chart also suggests that after multi-month lows, the price of Dogecoin must break out to set the stage for a potential upside.
Additionally, the breakout is seen as a pivotal moment in Dogecoin’s price action, with analysts predicting that if the cryptocurrency sustains above the breakout level, momentum could propel it further higher. This shift suggests that buyers may have regained control after months of downward pressure.
Another well-respected cryptocurrency analyst, Ali Charts, added further insight by observing a breakout in the relative strength index (RSI). The RSI, which tracks momentum, has been rising, suggesting that buying pressure is increasing after months of weakness.
The DOGE chart also shows a supertrend buy signal, another bullish indicator often used to predict market direction.
With these two technical indicators aligned, the likelihood of Dogecoin continuing to rise becomes stronger. According to Ali’s chart, Dogecoin may face resistance around $0.14, but if it can maintain its current momentum, it is expected to rise further.
Is Dogecoin poised for a 45% rally? Both analysts highlighted the potential for Dogecoin to rise further. Ali’s analysis suggests that the price of Dogecoin could rise 45% from current levels, which could see Dogecoin test $0.14 or even higher. Finally, Dogecoin appears to be entering a bullish period as the RSI and SuperTrend provide strong support for this outlook.
The article is for reference only and does not constitute investment advice.
