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Dogecoin repeats 2020’s trick – Should you bet on a similar breakout in 2024?

Press Releases Crypto News AMB-Crypto Dogecoin repeats 2020’s trick – Should you bet on a similar breakout in 2024?

Dogecoin’s bi-monthly RSI surge mirrored the bullish setup seen before 2020’s rally
Positive on-chain metrics and cautious optimism underlined potential

Dogecoin [DOGE]’s bi-monthly RSI has surged to levels not seen since 2020, mirroring a pattern that ignited a major rally years ago. At press time, DOGE was priced at $0.2112 following a 7.17% hike in the last 24 hours. Owing to the same, the memecoin now appears set for a potential breakout on the charts.

Worth noting, however, that with key resistance levels approaching, the next three candles will be pivotal in determining if this momentum can drive Dogecoin to a new bullish phase.

Is the technical setup favoring a breakout?

Dogecoin’s bi-monthly RSI reached 68.15, signaling growing buying pressure. Back in 2020, a similar RSI level marked the start of a massive price surge. As expected, this has fueled speculation that Dogecoin could be on the verge of another major move, according to an X post (formerly Twitter).

Source: X

However, while a high RSI indicates strength, it also hints at a possible overbought condition. Hence, the aforementioned finding raises questions about whether this momentum will hold or if a short-term consolidation is more likely.

Recent candlestick patterns underlined steady gains, with Dogecoin forming higher highs – A sign of growing bullish sentiment. And yet, at press time, the price faced a key resistance level at $0.229. Breaking through this level is essential for Dogecoin to confirm a bullish breakout, whereas failure could lead to a temporary pullback. This can potentially delay the memecoin’s next rally.

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Author: Erastus Chami

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