Dogecoin finds itself at a key price level following a market rally driven by the Federal Reserve’s announcement of a 50 bps interest rate cut. The meme coin is teetering on the brink of breaking a key resistance level, which could trigger a significant rally to new highs.
Currently trading near $0.11, Dogecoin has caught the attention of analysts and investors who are closely monitoring the next move. Technical indicators, including the Relative Strength Index (RSI), are starting to show a bullish outlook, suggesting that momentum may be building.
Many analysts believe that if DOGE can successfully cross the $0.11 mark, it could see a rapid surge of 30% in the coming weeks. As excitement builds across markets, this level of resistance could be critical to Dogecoin’s short-term price action. Investors are now watching closely to see if the meme coin can continue its momentum and move higher.
Dogecoin Prepares for ‘Bullish Breakout’
Dogecoin (DOGE) finds itself in a critical position of change after weeks of fear and uncertainty throughout the crypto market. Sentiment has quickly changed from bearish to optimistic, as investors and analysts are now anticipating a potential price hike if DOGE breaks a key resistance level.
Another prominent crypto analyst, Ali, recently shared his insight and technical analysis on Dogecoin’s price action on X. According to his analysis, Dogecoin is preparing for a bullish exit. The main indicator that supports this view is the Relative Strength Index (RSI) which is breaking its downtrend line on the daily chart.
RSI is a momentum indicator that measures the magnitude of recent price changes to assess overbought or oversold conditions. When the RSI rises, it indicates a change in market momentum, suggesting that the tide may be turning in favor of the bulls.
Ali’s analysis highlights that the recent movement of the RSI suggests market volatility, with increased chances of a rally in the coming weeks. However, for Dogecoin to enter a full-fledged bullish phase, it must first break through the critical resistance level of $0.11. Clearing this supply level will pave the way for the DOGE to test a new high, potentially triggering the next leg to the upside.
DOGE Price Levels to View
Dogecoin is currently trading at $0.108 after an 11% surge following the Federal Reserve’s announcement of a 50 basis point interest rate cut on Wednesday.
Despite the higher momentum, DOGE remains less than 8% below the key daily 200 exponential moving average (EMA) at $0.117, a key level that the bulls need to recapture for continued upside. The 200 EMA has historically served as a key indicator of long-term market direction, and a breach of it may indicate a shift to bullish momentum for Dogecoin.
However, if DOGE fails to break above the key resistance of $0.11 in the coming days, the price may return to the low demand levels around $0.097. This level has served as a recent support point and will be crucial in maintaining the current price range. If the price loses this support, a deep correction to $0.088 is expected, which could stop the bullish narrative and bring more uncertainty to the market.
The next few days will be crucial in determining whether Dogecoin can continue its upward trajectory or face another round of consolidation.
Featured image from Dall-E, chart from TradingView