Dogecoin (DOGE) Is Setting Up For A Breakout, Analyst Says

Widely followed crypto analyst Ali Martinez delved into DOGE's current state, offering a glimmer of hope for its price in the foreseeable future.

Dogecoin (DOGE) price action has been lagging behind recently, despite a tumultuous August that sent the crypto market spiraling. However, widely followed crypto analyst Ali Martinez delved into DOGE’s current state, offering a glimmer of hope for its price in the upcoming month.

According to Martinez, Dogecoin is showing robust signs of a potential rebound, indicating that a major upward move could be on the horizon.

Dogecoin Is Setting Up For A Breakout

In a Sept. 2 X post, Ali Martinez highlighted that canine-themed meme coin Dogecoin is showing signs of a positive divergence between the four-hour chart’s Relative Strength Index (RSI) — a price indicator used to identify overbought or oversold conditions — and its price action. The RSI typically jumps back to bullish territory when the price of an asset trends lower, signaling a bump for the asset’s price could be on the way.

Moreover, Martinez observed that Dogecoin’s TD Sequential indicator is flashing a buy signal. The TD sequential indicator is an oscillating trend-following chart overlay indicator used to determine short-term trend reversals based on changes in intraday highs and lows. In this case, the indicator predicts a possible shift toward an upsurge.

#Dogecoin is showing a bullish divergence against the RSI on the 4-hour chart, with the TD indicator flashing a buy signal. These positive signs suggest a potential price rebound for $DOGE on the horizon. pic.twitter.com/kxlQQK7ses

A Surprise DOGE Comeback In September?

Dogecoin is currently changing hands at $0.09745 — representing its lowest price since the crypto market drawdown on Aug. 5. While this decline might spook some investors, technical indicators suggest a possible reversal. If these patterns play out as predicted, DOGE could pull off a super bullish move toward new highs in September.

DOGE remains a top 10 cryptocurrency by market capitalization at approximately $15.6 billion.

The OG meme coin could be further affected by the utterances and actions of Tesla/SpaceX billionaire and DOGE champion Elon Musk. Recently, a federal judge permanently dismissed a lawsuit that alleged Musk and his electric car company, Tesla, manipulated DOGE’s price, causing a staggering $258 billion in damages. This means the eccentric CEO can continue using his influence to boost the DOGE price, including integrating the meme coin on X’s upcoming payments service.