Bitrabo Editorial
Recent developments in the cryptocurrency market indicate that DOGE is approaching an imminent breakout. In the past week, cryptocurrencies have been on an upward trend, allowing DOGE to move above a downward trendline that has characterized its rallies since April.
Crypto analyst Ali Martinez notes that this marks a significant step for Dogecoin towards a more sustained increase. The next hurdle for the popular meme coin is surpassing the $0.11 price mark, bolstered by bullish signals from technical indicators such as the RSI, which indicate optimism for future price action.
Dogecoin Positioned for a Breakout
Dogecoin stands at a pivotal moment as the cryptocurrency market responds to the recent cuts in interest rates by the Federal Reserve. This shift in monetary policy, alongside expectations for additional cuts, is generating positive momentum in financial markets, specifically benefiting digital currencies. Analyst Ali Martinez is actively analyzing DOGE’s performance and has identified two key signals that might indicate when a significant price movement could occur.
In his evaluation, which utilizes the daily Dogecoin/TetherUS (DOGE/USDT) candlestick chart, he describes a market trend that has been largely negative, marked by lower highs and lower lows since reaching $0.22 in April. This bearish trend has also reflected in the Relative Strength Index (RSI), a tool that measures price momentum. Previously, the RSI was in a downward trajectory, presenting a psychological barrier that hindered any significant upward momentum.
Interestingly, recent investments in the crypto space have caused the RSI for DOGE to begin rising and overcome its previous resistance. This upward movement is considered an essential initial step, suggesting that bullish momentum may be returning. Martinez highlighted that this breakout in the RSI meets the initial conditions needed for a larger Dogecoin price increase. The next critical goal is for DOGE to breach the $0.11 ceiling. If successful, it may initiate a rally that significantly alters the coin’s future trajectory for 2023.
#Dogecoin is on the edge of a turning point! One of the two necessary conditions has been fulfilled:
The RSI has moved above the downward trendline on the daily chart.
Next, we need $DOGE to push beyond the $0.11 resistance! pic.twitter.com/SbKS8hY3Ri
— Ali (@ali_charts) September 21, 2024
The Significance of $0.11
The $0.11 price mark is crucial for DOGE’s short-term outlook, as highlighted by data from IntoTheBlock (ITB). Their “In/Out of the Money Around Price” metric indicates that DOGE is trading just below a resistance point where 42,440 addresses collectively own 3.86 billion DOGE, based on previous pricing at $0.11.
This information underscores that many investors are poised to take profits if DOGE can exceed $0.11. Therefore, if DOGE manages to surpass this barrier, it could prompt some of these holders to sell and reinforce the level of resistance.
Currently, DOGE is priced at $0.1065. There is still a possibility for the bulls to push beyond $0.11 in the last week of September before the start of Uptober. However, there is also the risk of a reversal, which could see support testing at $0.098.