September 22, 2024 at 12:10 AM GST

updated: September 21, 2024 at 11:49 PM

2 mins read

News

Dogecoin has been exhibiting a downward trend on the daily chart. However, the Relative Strength Index (RSI) has recently broken through a descending trend line, indicating potential for a bullish breakout.

The critical resistance level of 0.11 USD is now crucial to watch for confirmation of the breakout. A break above $0.11 could result in a 45% price increase, while a failure could lead to consolidation or a reversal to the bearish side.

Several technical factors suggest that Dogecoin is nearing a breakout. The digital currency, which has faced declining popularity in 2024, is now showing signs of bullishness. Notably, the RSI has broken below a declining trend line, indicating increasing momentum.

Dogecoin is gearing up for a bullish breakout! And one of the two conditions has been achieved:

✅ The RSI broke the descending trendline on the daily chart.

⭕️ Now we need $DOGE surging past the $0.11 resistance!

https://t.co/XN6KPh0fRr pic.twitter.com/SbKS8hY3Ri

— Ali (@ali_charts) September 21, 2024

To confirm the breakout, Dogecoin must overcome a significant resistance level.

The initial bullish signal was the RSI reclaiming the broken descending trend line on the daily chart. The RSI currently stands at 51, indicating a balanced and slightly oversold position for DOGE.

A break of the RSI trendline suggests a shift where sellers are losing momentum while buyers are gaining control. This development sets the stage for a potential bullish breakout but is only one of two prerequisites.

Resistance at $0.11 Still in Focus

Despite the bullish RSI breakout, Dogecoin must break through a critical resistance level to confirm an upward movement. The $0.11 mark remains a significant barrier, and a clean break above this level would provide strong evidence of a sustained rally. Until this level is broken, caution is advised given the prevailing market conditions.

For traders observing the Dogecoin price, the current price formation provides an intriguing opportunity. Dogecoin is currently trading at $0.1091 with a 4.1% price increase. A break above the $0.11 resistance could lead to a 45% surge. Conversely, a failure to surpass this level could result in a continued downtrend or consolidation, potentially leading to a return to bearish territory.

share article

Disclaimer

Crypto News Land, abbreviated as "CNL," is an independent media outlet. We are not affiliated with any organization in the blockchain or cryptocurrency industry. Our goal is to deliver reliable and unbiased news to contribute to the growth of the crypto space. We believe in the transformative potential of cryptocurrencies and blockchain technology.

All sources used in our news articles are reputable and accurate to the best of our knowledge. However, we do not guarantee the accuracy or reliability of statements made by our sources or their underlying motivations. While we endeavor to verify the information we receive, we cannot guarantee the accuracy or completeness of any information on our website, as provided by our sources.

Furthermore, we emphasize that the information on our website should not be construed as financial or investment advice. We strongly encourage all visitors to conduct thorough research and consult with qualified experts before making any investment or trading decisions.