Dogecoin Eyes $0.11 Breakout As RSI Signals A Shift – Can DOGE Target New Highs?

Dogecoin finds itself at a crucial price level following a broader market surge driven by the Federal Reserve’s announcement of a 50 bps interest rate cut. The meme coin is teetering on the edge of breaking a key resistance level, which could trigger a significant rally to new highs. 

Currently trading near $0.11, Dogecoin has caught the attention of analysts and investors who are closely monitoring the next move. Technical indicators, including the Relative Strength Index (RSI), are beginning to signal a bullish outlook, suggesting that momentum may be building. 

Many analysts believe that if DOGE can successfully break past the $0.11 mark, it could see a rapid 30% surge in the coming weeks. With excitement brewing across the market, this resistance level may prove pivotal for Dogecoin’s short-term price action. Investors are now watching closely to see if the meme coin can sustain its upward momentum and push toward new highs.

Dogecoin (DOGE) finds itself at a pivotal turning point after weeks of fear and uncertainty across the crypto market. Sentiment has shifted quickly from bearish to hopeful, as investors and analysts now anticipate a potential price surge once DOGE breaks a key resistance level.

One prominent crypto analyst, Ali, recently shared his insights and technical analysis on Dogecoin’s price action on X. According to his analysis, Dogecoin is setting up for a bullish breakout. The primary indicator supporting this theory is the Relative Strength Index (RSI) breaking its descending trendline on the daily chart. 

The RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. When the RSI rises, it signals a shift in market momentum, suggesting that the tides may be turning in favor of the bulls.

Ali’s analysis highlights that the recent movement of the RSI suggests a market shift, with increased probability of a rally in the coming weeks. However, for Dogecoin to move into a full-blown bullish phase, it must first break through the critical $0.11 resistance level. Clearing this supply level would pave the way for DOGE to test new highs, potentially sparking the next leg of its upward trajectory.

Dogecoin is currently trading at $0.108 after an 11% surge following the Federal Reserve’s announcement of a 50 basis points interest rate cut on Wednesday. 

Despite the upward momentum, DOGE remains 8% below the crucial daily 200 exponential moving average (EMA) at $0.117, a significant level that bulls need to reclaim to establish a sustained uptrend. The 200 EMA has historically acted as a key indicator of long-term market direction, and breaking above it could signal a shift toward bullish momentum for Dogecoin.

However, if DOGE fails to break above the critical $0.11 resistance in the coming days, the price may retrace back 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. Should the price lose this support, a deeper correction toward $0.088 is expected, which could halt the bullish narrative and bring more uncertainty into the market. 

The next few days will be crucial for determining whether Dogecoin can continue its upward trajectory or face another round of consolidation.

Featured image from Dall-E, chart from TradingView