Dogecoin could be set to break from the current bearish trend as multiple analyses point to an imminent resistance breakout.
Dogecoin has continued to trend above a crucial support line at $0.16, which analysis described as a defining level for its bull cycle trend. Despite correcting slightly yesterday, the meme coin remains well within the multi-year ascending triangle.
Meanwhile, multiple indicators have flashed bullish sentiments on the Dogecoin chart. Notably, analysts have identified an imminent structural breakout backed by a possible bullish Stochastic RSI crossover.
Dogecoin Nears Resistance Breakout
Particularly, analyst Trader Tardigrade has identified a possible trend reversal on the Dogecoin 4-hour price chart. In a commentary today, he highlighted that the doggy-themed meme coin could reverse recent bearish momentum with a break above the resistance trendline currently impeding the asset’s push to higher prices.
The supply trendline emanated from DOGE’s surge to $0.2427 on March 3 and has resisted several attempts to break out. The analyst inferred that it must break the resistance at $0.17 to target higher prices. Notably, Dogecoin trades very close to the area, signaling an imminent trend reversal.
Moreover, analysis from another market watcher David supports Tardigrade’s perceived bullish momentum. The analyst noted in a recent post that DOGE looks set to break from a falling wedge price pattern forming on the 1D timeframe.
The bullish pattern has been developing since mid-January, getting tighter with the meme coin’s recent price action. Now, David predicts that Dogecoin would soon defy the structure’s upper resistance and break to higher prices.
Stochastic RSI Crossover Signals Bullish Momentum
Meanwhile, a historically bullish indicator for Dogecoin is nearing a crossover, signaling a significant trend shift for the digital asset. Prominent market watcher Ali Martinez uncovered this trend, suggesting an impending haul to bullish momentum for DOGE prices.
He shared that the stochastic relative strength index (RSI) eyes a bullish crossover on the weekly timeframe, a historical precedent for a massive price rally for DOGE. The Crypto Basic reported that the last three times the indicator flipped bullish, the meme coin rallied 88%, 187%, and a staggering 444%.
Additionally, renewed bullish traction on the Dogecoin ecosystem further boosts this sentiment. Data shows that the number of new addresses on the network surged over 100% in the past month, signaling a recovery in on-chain activity on the blockchain.
In the meantime, DOGE trades at $0.1698, up 3% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
