Dogecoin (DOGE) shows signs of a potential breakout, with technical indicators suggesting that a bullish movement could be imminent.
Despite the recent downturn in the broader crypto market, Dogecoin’s chart reveals a key pattern that has historically preceded significant price increases.
Falling Wedge: A Bullish Indicator
The falling wedge is a well-known chart pattern in technical analysis, often considered a bullish indicator. This pattern forms when the price of an asset consolidates between two downward-sloping lines, representing resistance and support levels that converge over time.
According to Ali Martinez, a prominent crypto analyst, Dogecoin has been developing this pattern since March 2024, when its price peaked at $0.22. The extended formation of the wedge over several months typically increases the likelihood of a breakout, potentially leading to a significant price surge.
Imagine if, after all this craziness, #Dogecoin is the one to break out and kick off the next leg up… Watch out for this falling wedge on the $DOGE daily chart — a sustained close above $0.10 could spark a bullish run to $0.15! pic.twitter.com/oGIeR3yHtF
— Ali (@ali_charts) September 9, 2024
Price has a tendency of making a sharp up move when the resistance level of a falling wedge is violated. This breakout has seen prices rising by between 15% and 25%, thus rewarding the traders with handsome profits.
Source: Ali Martinez
As Dogecoin is contained within the area depicted in the chart, people in the market are looking forward to a breakout which could be the start of a new bullish trend for the cryptocurrency.
Current Market Performance and Indicators
As of September 9th, Dogecoin’s price stood at $0.098825, reflecting a 4.23% increase in the last 24 hours. With a 24-hour trading volume of $495,835,361, Dogecoin ranks eighth on CoinMarketCap, boasting a live market cap of $14.4 billion. The cryptocurrency has a circulating supply of approximately 145.8 billion DOGE coins, with no maximum supply limit.
Source: CoinMarketCap
A closer look at Dogecoin’s price chart for September 9th reveals a steady upward trend throughout the day. The price began at around $0.09458, experiencing a notable spike early in the trading session.
Despite minor fluctuations, the price consistently moved upwards, peaking near $0.099 by the end of the day. This steady climb suggests increased buying interest and market optimism, which could further support a potential breakout.
Technical Analysis: MACD and RSI Signals
Dogecoin’s technical indicators provide additional insights into its current market position. The Moving Average Convergence Divergence (MACD) indicator, which is widely used to gauge market momentum, shows a slightly bearish signal.
The MACD line is marginally below the signal line, indicating limited downward momentum. However, the histogram is close to neutral, suggesting that the market could go either way.
Source: TradingView
Another technical aspect is the Relative Strength Index (RSI), which is currently trading around the midpoint of the gauge at 50. This position makes Dogecoin to be in the middle, not over bought or over sold as is the case with the current consolidation.
The RSI is neutral while the MACD is mildly bearish, therefore the market is in the middle of the range.
The post Dogecoin Price Update September 9: DOGE Approaches Key Resistance: Will the Falling Wedge Trigger a Breakout? appeared first on Coinfomania.
