The price of OG meme coin Dogecoin (DOGE) lagged recently, following a tumultuous August that sent the crypto market into a spiral. Widely followed crypto analyst Ali Martinez delved into DOGE’s current state, offering a glimmer of hope for its price in the foreseeable future.
According to Martinez, DOGE is showing robust signs of a potential rebound, indicating that a major upward move could be imminent.
Dogecoin Is Setting Up For A Breakout
In a Sept. 2 X post, Ali Martinez pointed out that canine-themed meme coin Dogecoin is showing signs of a positive divergence between the four-hour chart’s Relative Strength Index (RSI) — a price indicator used to identify overbought or oversold conditions — and its price action. The RSI typically jumps back to bullish territory when the price of an asset trends lower, signaling a bump for the asset’s price could be on the way.
Martinez also observed that Dogecoin’s TD Sequential indicator is flashing a buy signal. The TD sequential indicator is an oscillating trend-following chart overlay indicator used to determine short-term trend reversals based on changes in intraday highs and lows. In this case, the indicator predicts a possible shift toward an upsurge.
#Dogecoin is showing a bullish divergence against the RSI on the 4-hour chart, with the TD indicator flashing a buy signal. These positive signs suggest a potential price rebound for $DOGE on the horizon. pic.twitter.com/kxlQQK7ses
— Ali (@ali_charts) September 2, 2024
A Surprise DOGE Comeback In September?
Dogecoin is currently changing hands at $0.09745 — representing its lowest price since the crypto market drawdown on Aug. 5. While this decline might spook some investors, technical indicators suggest a possible reversal. If these patterns play out as predicted, DOGE could pull off a super bullish move toward new highs in September.
DOGE remains a top 10 cryptocurrency by market capitalization at approximately $15.6 billion.
The OG meme coin could be further affected by the utterances and actions of Tesla/SpaceX billionaire and DOGE champion Elon Musk. Recently, a federal judge permanently dismissed a lawsuit that alleged Musk and his electric car company, Tesla, manipulated DOGE’s price, causing a staggering $258 billion in damages. This means the eccentric CEO can continue using his influence to boost the DOGE price, including integrating the meme coin on X’s upcoming payments service.
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