Dogecoin (DOGE) appears primed for a bullish breakout, according to an analysis shared by crypto trader Ali (@ali_charts). The chart reveals two key conditions that need to align for DOGE to surge by up to 45%.
One of these conditions has already been met, setting the stage for potential price movement.
What you'll learn 👉
RSI Breakout Signals Bullish Momentum
The Relative Strength Index (RSI) is a primary indicator supporting this prospective price surge. Ali’s analysis emphasizes that the RSI on the daily chart has breached a descending trendline. Often seen as a sign of rising buying pressure, this breakout indicates that optimistic momentum is developing.
The RSI trendline has kept down pressure on the price for a long period, hence the breakout suggests a possible change in market mood. This change in momentum could fuel further price increases if the RSI continues to rise.
Critical Resistance at $0.11
The second key condition is a breakout of the $0.11 resistance level. According to Ali’s analysis, Dogecoin’s price is moving within a critical pattern, typically associated with bullish reversals. For Dogecoin to confirm this breakout, it needs to close above $0.11, a level that has acted as a strong resistance.
Should DOGE break through this level, the next target price is projected to be $0.16, representing a potential gain of over 45%. The combination of the RSI breakout and overcoming this resistance could lead to a significant upward move.
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Descending Wedge Pattern: A Bullish Reversal
Dogecoin is also making a falling wedge pattern, according to Ali’s analysis. This pattern makes it look like DOGE may soon break out of its recent downtrend. As the price gets closer to the upper limit of the wedge, the chance of a move to the upside grows.
The RSI has already broken out, but the market is now looking for a price move above $0.11 to confirm it. If this happens, traders may expect DOGE to rally toward the $0.16 level.
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