Recent market dynamics suggest that DOGE is on its way. Epic eruption is about to happen As the cryptocurrency continues to show bullish price action on a seven-day timeframe. This bullish price action saw DOGE break through a descending trend line that marked the peak of the highs since April.
According to cryptocurrency analyst Ali Martinez, this is the first step in Dogecoin’s path to a sustainable rally. All that’s left for the meme coin now is to break above the $0.11 price level, with technical indicators like the RSI Now indicates bullish outlook.
Dogecoin is ready to take off
Dogecoin now finds itself at a critical crossroads as the crypto market continues to play out after The Federal Reserve recently cut interest rates.This development and the expectation of further price cuts in the coming months have sent a wave of volatility through the financial markets, with cryptocurrencies benefiting greatly. Cryptocurrency analyst Ali Martinez has been keeping a close eye on DOGE’s price action. Martinez recently provided two specific signals that could indicate when and how the meme coin might be poised for a major move.
for him analysis, Based on the daily candlestick chart of Dogecoin/TetherUS (DOGE/USDT), the chart paints a picture of a largely bearish market, with lower highs and lower lows since its April peak at $0.22. This bearish price structure has been mirrored by similar movements in the Relative Strength Index (RSI), a momentum oscillator that tracks the speed and magnitude of price movements. The RSI has been following a downward sloping trend line, which has acted as psychological resistance and prevented any sustained upward momentum.
Interestingly, recent inflows into the crypto space have seen DOGE trend bullish and break resistance. This bullish break is a crucial first step, suggesting that momentum could be shifting in favor of the bulls. Martinez emphasized that this bullish RSI break meets the initial technical condition for a broader Dogecoin price breakout. The only thing left now is for DOGE to break above $0.11. If DOGE succeeds in breaking above $0.11, it could spark a rally that could redefine the coin’s trajectory for the rest of the year.
#Dogecoin You are getting ready for a big jump! One of the two conditions has been met:
✅The RSI broke the downtrend line on the daily chart.
⭕️Now we need doug Rising above the $0.11 resistance level! https://t.co/XN6KPh0fRr pic.twitter.com/SbKS8hY3Ri— Ali (@ali_charts) September 21, 2024
How important is $0.11?
The importance of the $0.11 price level for DOGE in the near term is reflected in an on-chain metric from IntoTheBlock (ITB). According to ITB’s “In/Out of the Money Around Price” metric, DOGE is trading below a resistance point with 42,440 addresses holding 3.86 billion DOGE tokens at a maximum 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 break through $0.11. If DOGE can break through this resistance level, some holders may choose to exit their positions and reinforce the resistance.
At the time of writing, DOGE is trading at $0.1065. Bulls have enough time to break the $0.11 level in the last week of September. Before October comesOn the other hand, there is a possibility of a reversal to retest the support at $0.098.
Featured image created using Dall.E, chart from Tradingview.com
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