Dogecoin (DOGE), the leading meme cryptocurrency by market capitalization, may be on the verge of a significant breakout. Crypto analyst Ali Martinez has pointed to key technical indicators suggesting that the digital asset could see a sharp upward movement in the near future.
In a September 19th update, Martinez highlighted two major signals driving this optimism. Firstly, the Relative Strength Index (RSI) on the daily chart is breaking a long-standing downward trendline, signaling a potential shift from bearish to bullish momentum. This shift indicates growing buying interest among investors, which could propel Dogecoin’s price higher.
Key Resistance Level Could Be the Trigger
Martinez also emphasized the importance of Dogecoin breaking through a crucial resistance level at $0.11. Currently, DOGE hovers around $0.1047, and if it surpasses this threshold, Martinez anticipates a potential price increase of up to 41.27%. This would push the price above $0.145, a promising outlook for Dogecoin holders.
Further strengthening the bullish case for DOGE is on-chain data, which reveals a significant rise in whale activity. Addresses holding over 0.1% of the total Dogecoin supply have increased their holdings by 39% in the past seven days. This spike in large holder activity signals growing confidence in Dogecoin’s potential, as whales typically increase their positions in anticipation of price rallies.
DOGE’s Profitability on the Rise
Supporting the bullish sentiment is data from Santiment, showing that over 102 billion Dogecoins, approximately 70% of the circulating supply, are currently in profit. This rise in profitable holdings marks a significant shift in investor sentiment, reflecting growing optimism about Dogecoin’s future trajectory.
Dogecoin Navigates Key Support Levels
As of today, Dogecoin is priced at $0.106, marking a 7.07% increase over the past four days. This uptick aligns with broader market conditions, particularly in light of the Federal Reserve’s expected interest rate cut on September 18. Furthermore, DOGE is trading firmly above the critical 50-day exponential moving average (EMA) at $0.105, which now serves as a key support level.
If Dogecoin continues to maintain its position above the 50-day EMA, the next target for bulls will be the 100-day EMA at $0.113. A breakthrough beyond this resistance could signal a strong market trend reversal, potentially pushing the price towards $0.15 in the near future.
Dogecoin’s moving average convergence divergence (MACD) indicator also suggests a positive outlook. The MACD line is currently positioned above both the signal and zero lines, reflecting robust buying activity that may drive further price increases. Additionally, the Chaikin Money Flow (CMF) indicator registers at 0.17, highlighting moderate bullish sentiment and the potential for further price gains.
Also Read: Dogecoin Eyes $0.15 As 70% Of Supply Now In Profit – Will The Rally Continue?
As Dogecoin continues to exhibit strong technical signals and increasing whale activity, market participants are keeping a close eye on whether DOGE can break through its key resistance levels. Should the breakout occur, Dogecoin could be poised for substantial gains in the coming weeks.
With signs of bullish momentum building and whale activity rising, Dogecoin’s outlook appears increasingly optimistic. If DOGE can surpass the $0.11 resistance level, the cryptocurrency could experience a breakout that pushes prices significantly higher. For investors and traders, Dogecoin’s near future may present a promising opportunity to capitalize on a potential rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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