Although things have been a bit slow in the cryptocurrency market lately, some digital assets are starting to recover, including Dogecoin (DOGE), which has just flashed one of its strongest technical setups in weeks, including finally breaking through its descending resistance line.
Specifically, DOGE confirmed its push with a relative strength index (RSI) breakout on the daily chart, a double signal suggesting momentum is shifting in the bulls’ favor, as popular pseudonymous crypto analyst Trader Tardigrade observed in an X post on September 8.
Indeed, the daily candle close validated this breakout, while the RSI breaking above its own downtrend reinforced the move. This dual confirmation has many traders watching for continuation, as Dogecoin has struggled for weeks under bearish pressure.
More positive indicators
Adding further intrigue is the Ichimoku analysis. As the professional crypto trader also observed, DOGE triggered a bullish Kumo breakout on September 7, meaning the price closed above the Ichimoku cloud, often signaling a key trend-reversal. The Kumo itself has flipped green, underscoring a bullish bias, and now acts as a support zone in the $0.215 – $0.226 range.
That said, not all signals are perfectly aligned. While the mid-term trend is positive with price above the Kumo cloud, the short-term remains pressured, with price still sitting below the Kijun-sen resistance at $0.238. The long-term Chikou Span also lags below price, giving a neutral overall score of zero in the analyst’s trend matrix and suggesting consolidation before a stronger push.
Still, traders can feel optimistic by the setup in the form of a recent Tenkan-sen/Kijun-sen bullish cross above the cloud on September 2, adding weight to the breakout, while a prior bullish Kumo twist in July hinted that momentum was quietly building.
Currently, DOGE is changing hands at $0.2329, indicating an increase of 6.45% in the last 24 hours and an 8.02% advance across the previous seven days, as it moves to erase the decline of 1.68% it accumulated on its monthly chart, as per the latest data.
All things considered, if DOGE can hold above cloud support and reclaim the Kijun-sen at $0.238, analysts see potential for a stronger rally. Failure to do so could trap price back into consolidation, but for now, the meme coin community is buzzing, and Dogecoin may have the technical foundation for its next move up.
What do you think?
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