Why Dogecoin (DOGE) Price is Gearing Up for Bullish Rally?

Dogecoin (DOGE) gained attention as key indicators suggest the coin is preparing for a potential price rally. Crypto analyst Ali Martinez has highlighted specific signs that point toward a bullish breakout for DOGE.

Consequently, according to Martinez, traders looking for opportunities in the Dogecoin market should monitor two important signals.

One of the major signals involves the Relative Strength Index (RSI), which indicates a critical trendline break. Additionally, Dogecoin is nearing a resistance level at $0.11.

If DOGE successfully surpasses this mark, its price could increase from its current level of $0.10470 to potentially $0.14500— a 41% rise.

RSI Breaks Trendline, Signaling Potential Upward Momentum

Notably, Martinez’s first key signal involves the RSI breaking its descending trendline on Dogecoin’s daily chart. The RSI is a crucial metric that measures the speed and change of price movements. In fact, when the RSI breaks a trendline, it often signals a potential shift in market sentiment from bearish to bullish.

Traders utilize this signal to determine if buying pressure increases, which could lead to a price rally.

Consequently, this break in the RSI trendline suggests that DOGE may enter a phase where further gains are likely. Therefore, investors and traders should closely monitor how this RSI movement aligns with other technical indicators.

Dogecoin Faces $0.11 Resistance Level

Martinez’s next major point focuses on DOGE’s proximity to the $0.11 resistance level, in particular. Recently, this level has acted as a barrier, preventing the memecoin from moving higher. Should a breakout occur above this resistance, it could also pave the way for further price increases.

Currently, Dogecoin is trading at $0.1045, having recently rebounded from a dip to $0.104. If DOGE surpasses the $0.105 mark, it might see a rapid ascent toward $0.14500, potentially reflecting a significant 38.75% gain.