Dogecoin Could Break Bearish Trend
Dogecoin is trending above a critical support line at $0.16, which analysts believe is pivotal for its bullish cycle. Despite a slight correction, the meme coin remains within a multi-year ascending triangle.
Multiple indicators are showing bullish signs on Dogecoin’s chart. Analysts have noted an imminent structural breakout, potentially supported by a bullish Stochastic RSI crossover.
Dogecoin Nears Resistance Breakout
Analyst Trader Tardigrade has identified a possible trend reversal on Dogecoin’s 4-hour price chart. He believes that if the coin breaks above the current resistance trendline, it could reverse recent bearish momentum. The resistance has been solid since DOGE’s surge to $0.2427 on March 3, and it must breach the $0.17 mark to target higher prices. Dogecoin is trading close to this area, indicating a likely trend reversal.
Additional Analysis
Market watcher David has supported Tardigrade’s analysis, noting that DOGE seems poised to break a falling wedge price pattern. This bullish pattern has formed since mid-January, becoming more constricted with Dogecoin’s recent price actions. David expects Dogecoin to surpass the upper resistance soon.
Stochastic RSI Crossover Signals Bullish Momentum
A historically bullish indicator is nearing a crossover, suggesting a significant trend shift for Dogecoin. Analyst Ali Martinez revealed that the stochastic relative strength index (RSI) is approaching a bullish crossover on the weekly timeframe, which traditionally precedes a strong price rally for DOGE. Previous bullish flips have led to rallies of 88%, 187%, and an astounding 444%.
Moreover, increased activity in the Dogecoin ecosystem contributes to this optimistic outlook. Recent data show a 100% increase in new addresses on the network, indicating a recovery in on-chain activity.
Currently, Dogecoin trades at $0.1698, marking a 3% increase in the last 24 hours.
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