Recent market dynamics suggest that DOGE is in the edge of a spectacular explosion as cryptocurrencies continue to show bullish price action over a seven-day period. This bullish price action has seen the DOGE break above the descending line that has defined the highest number of rallies since April.
According to crypto analyst Ali Martinez, this is the first step on Dogecoin’s path to a sustained rally. All that is left for the meme coin is now to cross the $0.11 price level, with technical indicators such as the RSI. now pointing to a bullish view.
Dogecoin Poised for Bullish Breakout
Dogecoin now finds itself in a critical situation as the crypto market continues to play in the background the latest Fed tapering. This development and the expectation of further rate cuts in the coming months have sent the financial markets flying, and cryptocurrencies have benefited greatly. Crypto analyst Ali Martinez has been closely monitoring DOGE’s price action. Martinez recently provided two specific signals that could indicate when and how the meme coin might be ready for a move.
His own analysis, based on the Dogecoin/TetherUS (DOGE/USDT) 1-day candlestick chart, it paints a picture of a market that has become very bearish, with lower highs and lower lows since its April high of $0.22. This bearish price structure is accompanied by similar movements in the Relative Strength Index (RSI), a fast oscillator that tracks the speed and magnitude of price changes. The RSI has been following a downward trend, acting as psychological resistance and preventing any further upward momentum.
Interestingly, the latest entry into the crypto industry saw the DOGE index move higher and break above resistance. This break to the upside is an important first step, indicating that the momentum may shift in favor of the bulls. Martinez emphasized that this upward break of the RSI satisfies the first technical condition for a broad Dogecoin price breakout. The only thing left now is for DOGE to break out above $0.11. Should DOGE succeed in breaching the $0.11 level, it could trigger a rally that could redefine the coin’s trajectory for the rest of the year.
#Dogecoin preparing for a bullish exit! And one of the two conditions has been met:
✅RSI has broken the downward trend line on the daily chart.
⭕️Now we need it $DOGE it breaks through resistance at $0.11! pic.twitter.com/SbKS8hY3Ri– Ali (@ali_charts) September 21, 2024
How Much Is $0.11 Worth?
The importance of the $0.11 DOGE price level in the short term is reflected in the on-chain metrics from IntoTheBlock (ITB). According to ITB’s “In/Out of the Money Around Price” metric, DOGE is trading below a resistance zone where 42,440 addresses hold 3.86 billion DOGE tokens at a high price of $0.11.
This is important because it shows that there are thousands of addresses waiting to make a profit if the meme coin can exceed $0.11. If the DOGE is able to press above this resistance, some holders may choose to exit their positions and strengthen the resistance.
At the time of writing, DOGE is trading at $0.1065. Bulls have plenty of time to pull back above $0.11 in the last week of September before Uptober arrives. On the other hand, there is a possibility of a pullback to retest the support at $0.098.
The featured image was created with Dall.E, a chart from Tradingview.com