Recent market dynamics suggest Dogecoin (DOGE), the Shiba Inu-inspired meme coin with the largest market cap, is on the verge of an epic breakout as the tailwind of what’s shaping up to be a near global monetary easing cycle continues to thrust crypto markets higher.
While technical indicators like the RSI now point to a bullish outlook for Dogecoin, the meme coin still appears to have a few roadblocks.
DOGE RSI Teases Bull Rally
Dogecoin now finds itself at a critical juncture as the crypto market continues to play out after China overnight joined nearly all other major global economies in easing monetary policy to fight a slowdown in the economy. This development and the expectation of more rate cuts in the coming months have sent ripples through financial markets, with cryptocurrencies benefiting greatly.
Well-known crypto analyst Ali Martinez has been closely watching DOGE’s price movement. Martinez recently shared a specific signal that could indicate the crypto’s readiness for a major upside move.
In a Sept. 25 post, he noted that Dogecoin continues flirting with a bullish price breakout. But, the pundit cautioned traders that patience is needed for this potential meteoric rally to occur.
According to Martinez’s analysis, Dogecoin’s Stochastic relative strength index (RSI) formed a bearish crossover, suggesting that a pullback could happen in the short term before any potential breakout.
An accompanying chart shows that Dogecoin is printing a falling wedge. The chart indicated DOGE exiting the falling wedge could set the stage for a 45% price rally. If this plays out, it will be one of the most outsized price breakouts in DOGE’s history.
Dogecoin Breaking $0.11 Is The Ultimate Bull Signal
Although the RSI breakout is a promising sign, Martinez observed a few days ago that what’s left before a massive DOGE pump is for the bulls to push prices above the crucial resistance zone at $0.11, which has capped gains in recent weeks.
The expert explained in an earlier post that $0.11 is key for a Dogecoin breakout, given the massive amount of coins held at this level. A decisive break above this region could spark a momentous surge that could define the top meme coin’s trajectory for the rest of 2024.
Dogecoin was up 0.5% over the last 24 hours to change hands at $0.1096 as of publication time. Bulls have enough time to break above $0.11 in the last week of September before the Uptober swing kicks off and DOGE potentially hits a dollar.
A one-dollar price tag would represent a 36% increase from Dogecoin’s May 2021 all-time high of $0.73 and an 812% increase from today’s price. That said, whether the meme coin hits a one-dollar price target remains to be seen.
