Dogecoin (DOGE), the original meme coin, has experienced a significant downturn over the past 30 days. The cryptocurrency has dropped 17.13%, bringing its current price to $0.097. However, this trend may soon reverse. Prominent digital assets expert Ali Martinez recently conducted a technical analysis (TA) that suggests Dogecoin could be poised for a rally.
Bullish Indicators Signal Possible Price Increase
Martinez shared his insights on September 2 in an X post, where he highlighted key bullish indicators. He noted that DOGE is showing a bullish divergence against the Relative Strength Index (RSI), a momentum indicator that tracks recent price moves. Additionally, the TD Sequential indicator is giving a buy signal, further supporting the possibility of a price surge.
The TD Sequential indicator, which analyzes historical price movements, aims to identify trend reversals. In this case, it suggests that Dogecoin’s recent struggles might be coming to an end.
Key Resistance Levels to Watch
While predicting the exact magnitude of the rally remains challenging, certain price levels could confirm bullish momentum. If Dogecoin breaks above its first resistance level at $0.099896, it would signal the start of a potential uptrend. Moving beyond the third resistance level at $0.1066 could indicate a significant rally, possibly pushing DOGE toward its previous yearly highs above $0.2.
On the other hand, if DOGE falls below its support level at $0.093, the immediate buy signal would likely be invalidated. This makes the next few trading sessions critical for determining the meme coin’s direction.
Mixed Signals from Other Technical Tools
However, not all technical indicators align with this optimistic outlook. On the stock and digital asset analysis platform TradingView, Dogecoin’s overall TA rating remains ‘sell.’ This rating holds steady across the last 24 hours, seven days, and one month of trading. Oscillators also remain neutral during these periods, while moving averages (MAs) continue to recommend selling DOGE.
Despite Dogecoin’s decline of over 15% in the last month, it has managed to stay in the green on a year-to-date basis, albeit only by 5.85%. Although the market sentiment remains largely bearish, the upcoming days will be crucial in determining whether DOGE can reverse its fortunes and rally once again.
Read Also: Dogecoin Struggles Below $0.10: What’s Next For The Meme Coin?
