Dogecoin (DOGE) Shows Signs Of A Possible Breakout In The Near Future

The leading meme cryptocurrency by market cap, shows signs of a possible breakout in the near future, as noted by crypto analyst Ali Martinez.

Meme cryptocurrency Dogecoin (DOGE) price seems to be preparing for a potential breakout in the coming days, as noted by crypto analyst Ali Martinez. In a post on September 19, several key technicals were highlighted that could drive DOGE price higher.

Dogecoin Price Analysis: Key Technicals Pointing To Potential Breakout

Firstly, the daily chart Relative Strength Index (RSI) is breaking out of a downtrend line, showing a possible shift from bearish to bullish momentum. This technical development suggests growing buying interest among investors.

Secondly, it is crucial to watch for Dogecoin breaking through the $0.11 resistance level. If DOGE manages to close above this threshold, we can expect the price to rally from $0.1047 to over $0.145, showing a potential potential increase of around 41.27%.

On-chain data reveals a remarkable increase in large holder inflows for DOGE this week. Addresses holding over 0.1% of the total supply, also known as “whales,” have increased their DOGE holdings by 39% in just seven days. This activity reflects growing confidence in the future of the meme coin.

Also, data from Santiment reveals that a large portion of the circulating DOGE supply is now profitable. At the moment, over 102 billion Dogecoin, which accounts for about 70% of the total supply, is in profit for investors. This increase in profitable holdings marks a shift in sentiment among the DOGE community, suggesting increasing optimism about its future.

Dogecoin Navigates Key Support Level

At press time, DOGE is valued at $0.106, showing a 7.07% increase over the last four days. This recent uptick aligns with the Federal Reserve’s expected interest rate cut on September 18.

Furthermore, DOGE is strongly positioned above the vital 50-day exponential moving average (EMA) at $0.105, which acts as a crucial support level.

If DOGE manages to continue staying above the 50-day EMA, the next target may be the 100-day EMA at $0.113, which serves as resistance. A clear breakout above this threshold could indicate a substantial shift in market trends, potentially aiming for $0.15 in the near future.

The moving average convergence divergence (MACD) indicator for Dogecoin suggests a bullish outlook. The MACD line is positioned above both the signal and zero lines, reflecting strong buying activity that may be driving the current price increase.

Moreover, the Chaikin Money Flow (CMF) for DOGE registers at 0.17, indicating moderate bullish sentiment and the possibility of further price gains.