Dogecoin (DOGE) Breakout: H4 Chart Confirms Bullish Reversal
- Dogecoin has flipped from a bearish to a bullish trend on the H4 chart.
- Breakout above the trendline signals growing upward momentum.
- RSI nearing the 50 level could confirm a continued bullish drive.
Dogecoin (DOGE) is currently trading at $0.1541, showing signs of life after days of bearish pressure. A close look at its 4-hour chart reveals a crucial technical shift that could redefine its short-term path.
Trader Tardigrade highlights a clear trend reversal and momentum recovery forming beneath the surface. Between April 13 and April 16, Dogecoin followed a descending pattern, with lower highs and lower lows forming a well-defined downtrend.
The trendline connecting these points served as dynamic resistance up to April 16, when a sharp rally broke through the ceiling. Such a breakout is considered a technical turning point.
This breakdown isnt simply a boundary-crossing, it is a possible change in market mood and may draw buyers looking for trend continuance.
Price action since the breakout has been in line with expected bullish action. Candlesticks went green, momentum increased, and higher short-term highs started showing up. Such developing structure lends credence to the theory that Dogecoin has changed directions, at least in the near-term.
RSI Approaches Critical Threshold
The Relative Strength Index (RSI) provides another important momentum indicator. The RSI, held back previously below the neutral 50 level by the downtrend, is now rising back toward that dividing point. Tardigrade highlights the level as a crossing point, with crossing it a sure sign that bullish momentum is in the process of taking over.
On the H4 chart, RSI remained around 45 during the breakout, indicating early strength. As the price increases, the RSI creeps higher, now resting at just under 50. The indicator has yet to cross into overbought, keeping the door open for additional upside.
Traders tend to monitor this level closely; anything higher than 50 would be a confirmation of uptrend conditions, but failure to retake that level may signal a false move.
The RSI action supports the price action, showing that the buyers are gradually taking control following weeks of choppy, negative movement.
Potential and Caution in Equal Measure
Although that technical configuration leans in the favor of the bulls, threats still exist. False breakups are typical in such high-volatility assets as Dogecoin. If the price falls back under the trendline, or if RSI does not cross 50 and heads back down, the bullish case is compromised. Confirmation from volume, normally lacking in weaker breakups, will be necessary in validating such a rise.
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Read more: https://www.tronweekly.com/dogecoin-doge-breakout-h4-chart-confirms/
Text source: TronWeekly
