Dogecoin (DOGE) is currently positioned for a potential turnaround following a lengthy period of price decline. A seasoned cryptocurrency analyst has provided an in-depth examination detailing several key factors suggesting that this might be an ideal moment to acquire DOGE. With expectations of an imminent price breakthrough, entering the market now could allow investors to capitalize on significant future gains.
Reasons Why Investing in Dogecoin Could Be Lucrative
According to crypto analyst KJThaLibra, an extensive chart analysis indicates that buying Dogecoin at its current valuation may be a wise decision for investors. This analysis outlines compelling evidence supporting the idea that a bullish breakout for Dogecoin is on the horizon.
The first critical finding from the analyst is the appearance of a Bullish Divergence pattern on the Relative Strength Index (RSI). While DOGE’s price recently dipped to a new low, the RSI demonstrated a contrasting upward trend, indicating a potential shift in momentum and a possible reversal of the bearish trend.
The second point emphasized by KJThaLibra is that Dogecoin’s RSI has moved into an oversold region on the daily chart. This could signal an excessive outflow, with a rebound likely as buying demand begins to recover. Notably, a recent formation of a higher low in price action is breaking the trend of consistent lower lows observed over recent months.
This emerging higher low signifies a shift in market sentiment, hinting at a potential transition from bearish to bullish conditions. This is further underscored by Dogecoin’s position just beneath a significant descending trendline that has historically acted as a barrier since last year.
Resistance Levels Fuelling a Potential DOGE Surge
The previously mentioned descending trendline has faced multiple tests over time. According to KJThaLibra, recurring respect for a resistance line often leads to a more pronounced breakout once it is eventually surpassed.
Currently, with Dogecoin trading just below this pivotal trendline, a successful breakout, particularly if reinforced by increased trading volume, could ignite a new wave of momentum, pushing the meme coin to potentially record high levels. The analyst forecasts this bullish scenario could see prices climbing towards $0.4. This outlook is fortified by established resistance trends, suggesting that now is an advantageous time to invest in Dogecoin.
The anticipated market trajectory indicates a breakout above the trendline, followed by a brief consolidation period where the previous resistance transforms into support. This may set the stage for a continued upward trend. With Dogecoin currently valued at $0.18, achieving a price point of $0.4 would translate to an impressive potential uplift of approximately 122.22%.
