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28 September, 2024

Dogecoin Breakout: Is DOGE Ready to Soar?

28 September, 2024

Dogecoin’s Bullish Breakout: Is the Meme Coin Ready to Take Flight?

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Veteran commodity trader Peter Brandt, a respected figure in the financial world, has turned his attention to Dogecoin (DOGE), the leading meme-based cryptocurrency, suggesting a potential bullish breakout. In a recent post on X, Brandt highlighted a DOGE/USDT chart, pointing to a breakout from a descending channel that DOGE had been trapped in for over six months. This breakout could signal a significant shift in the asset’s trajectory.

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Brandt’s analysis reveals that DOGE, which had traded within a horizontal channel between July 2022 and July 2024, experienced fluctuations between a lower trend line of $0.05 and an upper level of $0.1181. After reaching a peak of $0.2100 in March, DOGE entered a descending pattern. However, current indicators suggest that DOGE may be breaking free from this downward trend.

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Brandt emphasizes a “constructive” longer-term chart for DOGE, adding a note of optimism with the encouraging message, “Get along little doggie.” This positive sentiment is supported by the broader crypto market’s recent upswing. DOGE’s price surged 8.2% in the past 24 hours, trading at around $0.1235. This upward trend aligns with the market’s general bullish sentiment, but Brandt’s technical analysis suggests that DOGE’s breakout could signal the start of a sustained upward movement.

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Additional Bullish Indicators for DOGE’s Momentum

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Peter Brandt’s observation is not an isolated case of bullish sentiment surrounding Dogecoin. Another prominent crypto analyst, Ali, has also noted DOGE’s recent strength. In an X post on September 26, Ali pointed out that DOGE has experienced a Relative Strength Index (RSI) and price breakout from multi-month downtrends. Additionally, the asset has received a buy signal from the SuperTrend indicator. These developments indicate a potential shift in momentum towards the meme-based cryptocurrency.

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Prior to DOGE’s surge above $0.12, Ali had set specific conditions for a full-fledged bullish rally for the asset. These conditions included breaking the descending trendline of RSI on the daily chart and pushing past a resistance level of $0.11. DOGE’s success in achieving both conditions has further fueled Ali’s positive sentiment about the possibility of an extended rally.

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DOGE’s ability to break key technical levels provides a favorable outlook for further price appreciation. This suggests that the current rally might not be a short-term burst but rather a sign of a potential sustained upward movement. Whether this signals a true “to the moon” scenario for DOGE remains to be seen, but the recent bullish signals are certainly generating excitement and optimism within the crypto community.