Dogecoin is showing strong signs of a possible breakout, with technical indicators focusing on a possible move towards the $0.1491 mark. The Relative Strength Index (RSI) has moved into bullish territory, signaling growing momentum and showing that further gains could be on the horizon. This rise in the RSI suggests that buyer confidence is strengthening, giving Dogecoin significant upside.
This analysis aims to explore Dogecoin’s bullish potential as it approaches a key resistance level at $0.1491. It will provide insight into rising buying interest and the possibility of an upside breakout, examining the recent shift in the RSI and other technical indicators.
RSI signals growing bullish sentiment for Dogecoin
After the recent recovery at $0.1293, the price of DOGE on the 4-hour chart remained under pressure and approached $0.1491 while aiming to break past it. DOGE is also trading above the 100-day Simple Moving Average (SMA), indicating a positive uptrend that could lead to a possible breakout.
Analysis of the 4-hour Relative Strength Index (RSI) indicates potential for further upside, with the RSI returning to the 62% level after an earlier dip to 34%. As the RSI continues to rise, traders are becoming increasingly optimistic about the asset’s future performance. If this upward momentum continues, it could pave the way for a significant price increase, potentially testing key resistance levels.
Also on the daily chart, Dogecoin has shown strong upward movement, reflected in multiple positive candlesticks after a successful recovery at $0.1293 while continuing to trade above the 100-day SMA. Trading above the 100-day SMA not only suggests that Dogecoin is in a bullish phase, but also means that previous resistance levels can now act as support and provide a safety net for future price movements.
Finally, a detailed examination of the RSI formation on the 1-day chart indicates renewed positive strength for DOGE, as the indicator’s signal line has risen back to 64% after falling to 57%, indicating continued bullish prospects.
Potential Upside Targets: What’s Beyond $0.1491?
As Dogecoin approaches the $0.1491 resistance level, attention turns to potential upside targets in the event of a breakout. If DOGE successfully breaks this key threshold, the next major target could be around $0.1649, where historical resistance could come into play. Should bullish momentum continue and overcome this level, DOGE could continue to test even higher price levels.
However, if the meme coin fails to maintain its upside, DOGE could return to the previous support level of $0.1293. Exceeding this level could lead to further declines, leading to a decline towards $0.0914 and other lower price ranges.
