The pioneering meme currency, Dogecoin (DOGE), has been undergoing a decline over the past 30 days, reflecting a 17.13% decrease to a DOGE price today of $0.097.
Nonetheless, there may be imminent changes for this well-known cryptocurrency as technical analysis (TA) performed by renowned digital asset specialist, Ali Martinez, suggests that Dogecoin is poised for an upward movement.
Indeed, Martinez elaborated in an X post dated September 2, indicating that DOGE is exhibiting a bullish divergence in relation to the relative strength index (RSI) – a momentum gauge that measures the magnitude of recent price shifts – while the TD Sequential is signaling a buy opportunity.
TD Sequential serves as another analytical tool that utilizes past price movements to indicate whether a trend reversal is imminent and, in this instance, to assess if DOGE’s recent challenges will continue.
To what extent will Dogecoin rise?
While I cannot ascertain with complete certainty how high the rally might elevate Dogecoin’s price, I contend that a breakthrough above the initial resistance point at $0.099896 would strongly suggest a continuation of the bullish trend.
Furthermore, surpassing the third resistance level at $0.1066 would imply a significant upward trend that could potentially push the meme currency towards its previous yearly peaks exceeding $0.2.
Conversely, should DOGE decline further below its support at $0.093, I would regard the immediate buy signal as invalid.
Other analytical tools, however, do not provide grounds for optimism. Dogecoin’s overall TA score on the trading and digital asset assessment platform TradingView is categorized as ‘sell,’ irrespective of whether it’s based on the last 24 hours, a week, or a month of trading.
Similarly, while oscillators maintain a ‘neutral’ stance across all three time frames, moving averages (MA) consistently advocate for selling DOGE.
Dogecoin price chart
Regardless of what lies ahead for Dogecoin, the reality remains that its recent performance has been underwhelming. For instance, during the last 30 trading days, the meme currency was in positive territory on merely 12 occasions, indicating a generally bearish sentiment in the crypto market, which is not surprising.
Nonetheless, even though DOGE has fallen more than 15% over the last month, it has managed to remain in the positive on the year-to-date chart, albeit just by 5.85%.
Image Source: alfernec / Shutterstock
