Dogecoin (DOGE) Nears Resistance Breakout as Multiple Analyses Point to an Imminent Trend Reversal

Dogecoin has continued to trend above a crucial support line at $0.16, which analysis described as a defining level for its bull cycle trend.

Dogecoin price has come above the crucial support level of $0.16, which is said to be defining for its bull cycle trend. While the meme coin corrected slightly yesterday, it remains well-supported within the multi-year ascending triangle.

Meanwhile, multiple indicators have flashed bullish sentiments on the Dogecoin chart. Notably, analysts have identified an imminent structural breakout backed by a possible bullish Stochastic RSI crossover.

Dogecoin Nears Resistance Breakout

Particularly, analyst Trader Tardigrade has identified a possible trend reversal potential on the Dogecoin 4-hour price chart.

In a commentary today, he highlighted that the doggy-themed meme coin could reverse recent bearish momentum with a break above the resistance trendline.

The analyst noted that the supply trendline, which began with Dogecoin’s surge to $0.2427 on March 3, has resisted several attempts to break through. It must break the resistance at $0.17 to target higher prices.

(Image Credit: Trader Tardigrade)

At press time, Dogecoin trades very close to the area, signaling an imminent trend reversal.

However, another market watcher, David, has spotted a broader bullish pattern that could push Dogecoin to higher highs.

The analyst noted in a recent post that DOGE looks set to break from a falling wedge price pattern forming on the 1D timeframe.

The bullish pattern has been developing since mid-January, getting tighter with the meme coin’s recent price action. Now, David predicts that Dogecoin would soon defy the structure’s upper resistance and break to higher prices.

Stochastic RSI Crossover Signals Bullish Momentum

Meanwhile, a historically bullish indicator for Dogecoin is nearing a crossover, signaling a significant trend shift for the digital asset.

Prominent market watcher Ali Martinez uncovered this trend, suggesting an impending haul to bullish momentum for DOGE prices.

He shared that the stochastic relative strength index (RSI) eyes a crossover on the weekly timeframe, a historical precedent for a massive price rally for DOGE.

The last three times the indicator flipped bullish, the meme coin went on to rally 88%, 187%, and a staggering 444%.

This signals that a Stochastic RSI crossover could set the stage for another substantial price surge.

Furthermore, renewed bullish traction on the Dogecoin ecosystem is boosting this sentiment.

Data shows that the number of new addresses on the network surged over 100% in the past month, signaling a recovery in on-chain activity on the blockchain.

In the meantime, DOGE trades at $0.1698, up 3% in the past 24 hours.