The original meme coin, Dogecoin (DOGE), has been experiencing a downturn in the last 30 days, with a 17.13% decline to DOGE price today of $0.097.
Things may, however, soon change for the popular cryptocurrency as technical analysis (TA) conducted by the prominent digital assets expert, Ali Martinez, hints that Dogecoin is set for a rally.
Indeed, Martinez explained in an X post made on September 2 that DOGE is showing a bullish divergence against the relative strength index (RSI) – a momentum indicator that tracks the size of recent price moves – and that TD Sequential is giving a buy signal.
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TD Sequential is another technical indicator that uses historical movements to reveal whether a trend reversal is about to occur and, in this case, to determine whether DOGE’s recent struggles will persist.
How much will Dogecoin rally?
Though I cannot predict with absolute certainty how far the rally might propel Dogecoin’s price, I believe a break above its initial resistance level at $0.099896 would strongly indicate a continuation of the bullish momentum.
Additionally, rising beyond the third resistance level at $0.1066, on the other hand, would hint at a major uptrend that could possibly see the meme coin rally toward its previously yearly highs above $0.2.
On the other hand, should DOGE drop further and below its support at $0.093, I’d consider the immediate buy signal to be invalidated.
Other technical analysis tools, however, don’t give reason for optimism. Dogecoin’s overall TA rating on the stock and digital asset analysis platform TradingView stands at ‘sell,’ whether based on the last 24 hours, seven days, or one month of trading.
Similarly. while oscillators remain fixed on ‘neutral’ for all three time frames, moving averages (MA) continuously recommend selling DOGE.
Dogecoin price chart
Whatever the future may hold for Dogecoin, the fact that its recent performance has been weak remains. For example, out of the last 30 trading days, the meme coin was in the green on only 12, meaning that the general sentiment in the crypto market is bearish, which is hardly surprising.
Still, despite DOGE declining more than 15% in the last month, it has managed to stay in the green in the year-to-date chart, albeit only by 5.85%.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
