Veteran commodity trader Peter Brandt recently drew attention to Dogecoin (DOGE), the largest meme-based cryptocurrency by market capitalization, suggesting a potential bullish breakout.
Brandt shared a DOGE/USDT chart in a post on X, pointing to a breakout DOGE has recently achieved from a descending channel that the asset has been stuck in for over half a year.
Identified Bullish Momentum in Dogecoin
The chart shared by Brandt further reveals that DOGE, which had previously been trading within a horizontal channel for roughly two years between July 2022 and July 2024, experienced fluctuations between a lower trend line of $0.05 and an upper level of $0.1181.
DOGE peaked at $0.2100 in March before entering its descending pattern. Now, signs indicate that DOGE might be breaking free from this downward trend.
Brandt emphasized that the longer-term chart for DOGE could be considered “constructive,” supporting his analysis with the encouraging message, “Get along little doggie.” So far, DOGE has been riding the positive wave seen in the broader crypto market.
The asset’s price climbed 8.2% in the past 24 hours, trading at around $0.1235. While this upward trend aligns with the market’s general bullish sentiment, Brandt’s technical analysis suggests that DOGE’s breakout could signal the beginning of a more sustained upward movement.
Other Bullish Indicators for DOGE’s Momentum
Peter Brandt’s observation is not the only bullish sentiment surrounding Dogecoin. Another prominent crypto analyst, Ali, recently noted that DOGE appears to be showing strength.
In an X post uploaded on September 26, Ali pointed out that DOGE has experienced a Relative Strength Index (RSI) and price breakout from multi-month downtrends.
Furthermore, the asset has received a buy signal from the SuperTrend indicator. These developments indicate that momentum is potentially shifting toward the meme-based cryptocurrency.
Before DOGE’s surge above $0.12 today, 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.
#Dogecoin is gearing up for a bullish breakout! Watch for two key signals:
First, RSI breaking the descending trendline on the daily chart.
And second, $DOGE surging past the $0.11 resistance! pic.twitter.com/7i1QMXNi3F
— Ali (@ali_charts) September 19, 2024
With DOGE successfully achieving both conditions, the analyst’s sentiment has grown increasingly positive about the possibility of an extended rally.
DOGE’s ability to break key technical levels provides a favorable outlook for further price appreciation, indicating that the current rally might not be just a short-term burst.
Featured image created with DALL-E, Chart from TradingView