Dogecoin has reached a crucial price level after the broader market rallied on the Federal Reserve’s announcement of a 50 basis point rate cut. The meme coin is teetering on the brink of breaking a key resistance level, which could lead to a major surge to new highs.
Dogecoin is currently trading at $0.11, which has caught the attention of analysts and investors who are closely watching the next move. Technical indicators, including the Relative Strength Index (RSI), have started to point to a bullish outlook, suggesting that momentum may be building.
Many analysts believe that if Dogecoin can successfully break through the $0.11 barrier, it could see a rapid 30% surge in the coming weeks. With excitement running rampant in the market, this resistance level could be pivotal for Dogecoin’s price action in the short term. Investors are now watching closely to see if the meme coin can maintain its upward momentum and push towards new highs.
Dogecoin poised for ‘bullish run’
Dogecoin (DOGE) has reached a pivotal turning point after weeks of fear and uncertainty in the cryptocurrency market. Sentiment has quickly turned from bearish to hopeful, with investors and analysts now anticipating a potential price surge once Dogecoin breaks a key resistance level.
A prominent cryptocurrency analyst, Ali, recently shared his thoughts and technical analysis on Dogecoin price action on XAccording to his analysis, Dogecoin is preparing for an upward surge. The primary indicator supporting this theory is the Relative Strength Index (RSI) which is breaking its downward trend line on the daily chart.
The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price movements to assess overbought or oversold conditions. When the RSI rises, it signals a shift 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 indicates a reversal in the market, with the potential for a rise increasing in the coming weeks. However, for Dogecoin to move into a full-fledged bullish phase, it must first break the critical resistance level at $0.11. Breaking this supply level would pave the way for Dogecoin to test new highs, which could ignite the next phase of its bullish trajectory.
DOGE Price Levels to Watch
Dogecoin is currently trading at $0.108 after surging 11% following the Federal Reserve’s announcement of a 50 basis point interest rate cut on Wednesday.
Despite the bullish momentum, DOGE is still 8% below the crucial 200-day exponential moving average (EMA) at $0.117, a key level that bulls need to reclaim to establish a sustainable uptrend. The 200-EMA has been a key indicator of the long-term market direction, and a break above it could signal a shift towards bullish momentum for Dogecoin.
However, if DOGE fails to break the critical resistance level at $0.11 in the coming days, the price could drop to lower demand levels around $0.097. This level has served as a recent support zone and will be pivotal in maintaining the current price range. If the price loses this support, a deeper correction towards $0.088 is expected, which could halt the bullish narrative and bring more uncertainty to the market.
The next few days will be crucial in determining whether Dogecoin is able to continue its upward trajectory or face another round of consolidation.
Featured image by Dall-E, chart by TradingView