As Dogecoin approached the weekly close, it came to the fore with a new break signal on the Relative Strength Index (RSI), which is considered one of the leading indicators of strong movements as well as the course of the price. Especially cryptocurrency analysts and active trading communities are watching this development closely. It is taken into account that similar RSI breakouts in past Dogecoin cycles paved the way for remarkable increases.
New signal in technical indicators
In recent weeks, Dogecoin’s weekly RSI has been stuck in a contracting triangle. Cryptocurrency analyst Trader Tardigrade highlighted on the chart that this squeeze broke towards the upper band. Such breakouts in the RSI can indicate momentum changes in the market before the price movement becomes fully clear. Especially in the past, similar formations in Dogecoin triggered significant upward movements with the increase in transaction volume.
Trader Tardigrade said, “Dogecoin RSI was stuck in a contracting triangle and has now started to break upward.” shared his assessment.
Another factor that analysts draw attention to is that the selling pressure has weakened on the weekly chart. Buyers seem to have been stronger lately, but it should be noted that Dogecoin is still trading well below its record highs in 2021. The signal on the RSI does not yet indicate a complete trend reversal; For this reason, the emphasis on caution comes to the fore.
Resistance and support levels
Dogecoin price is moving around $0.096 on the daily chart. CryptoAppsy According to data, after the last downtrend, the price has been stuck in the range of $0.090 to $0.0987 since mid-March, establishing a short-term balance. In particular, the $0.0987 level is followed as an important resistance in the short term. A daily close above this level could turn the technical outlook positive and cause new buyers to enter the market.
If the upward movement continues, the $0.1033 and $0.1060 resistances stand out as the next stops. Above this threshold, the $0.1106 level corresponds to a stronger seller zone in the market. Investors evaluate that profit sales may increase in this region.
Downside risks are clearly defined. In recent weeks, the $0.0900 band has acted as support many times. If the price were to clear below this level, the emergence of the $0.0850 to $0.0800 area could negate the short-term base formation.
Weekly closing is important
Analysts emphasize that it is important for the weekly candle to close confirming the RSI breakout. If the weekly close is above the RSI breakout zone, it is possible that the momentum will continue in the short term. On the contrary, it is stated that if the closing remains below this zone, the breakout may be considered invalid and the price may remain in a new horizontal band.
While uncertainty regarding Dogecoin’s technical trends continues, medium and long-term investors are taking into account the RSI indicator as well as the price’s attitude at critical levels for potential movement. Both the weekly close and RSI behavior in the coming days may clarify the search for direction in the Dogecoin market.
