Will Dogecoin Price Breakout soon have a trend reversal?

The Price of Dogecoin tested the critical level of support, which indicates a possible trend reversal.

According to a recent technical analysis, the Meme coin will probably break out of the current bear trend, with some indicators pointing to an optimistic train.

Dotecoin price support level

The price for Dogecoin has currently traded stable above the crucial support of USD 0.16. This level was recognized by Trader Tardrrade as a cheap phase for the bull cyclical.

Although some downward movements have been experienced in the past few days, the potential for further profits has been optimistic because the Meme coin was able to act over this support.

In particular, the price for Dogecoin has formed a rising triangle of several years, which is a diagram pattern that is often preceded by the outbreaks of price.

If Dogecoin can go beyond the level of resistance at 0.17 $ 0.17, Tarderde suggests achieving a higher price level, as this can lead to a trend reversal.

This has caused a certain optimism about the future price movement of the crypto, since the coin is currently positioned near the resistance area.

Stochastic RSI crossover: an important bullish indicator

Another important factor that supports the possibility of a trend reversal for Dogecoin is the almost stochastic RSI crossover.

A close look at this indicator is essential, since this is regarded as the starting point for a new bullish phase, as indicated by analyst Ali Martinez.

According to historical data, former Kreuzhäuser of the Stochastic RSI often lead to Dogecoin pricing.

Remarkably, the stochastic RSI is an impulse soscillator that determines where the RSI is in the area of ​​its price for a certain period of time.

A crossover occurs when the RSI line moves over a certain threshold and signals the potential for a price movement upwards.

If the Stochastic RSI carries out a bullish crossover for the weekly time frame, this could indicate that the Price for Dotecoin has a sharp rally, similar to earlier events.

When this last occurred, Dogecoin recorded significant profits, including 88%, 187%and 444%.

In view of such precedent, retailers and analysts keep this indicator exactly in order to determine the possibility of a price outbreak.

Increase in Dogecoin network activity

Apart from the technical indicators, the increased Dogecoin network activity offers an additional basis for a trend reversal. Last month, the number of new addresses on Dotecoin blockchain grew by more than 100%.

The sudden increase in activities in the chain could mean a new interest in Dogecoin, which could lead to more price increases.

An increase in new addresses shows a recovery in the feelings of the market and the participation of investors. An increase in network activity could indicate that more people get in touch with Dogecoin.

These can be done either by buying, holding or using the cryptocurrency for various purposes.

Such an increase in the user engagement can give Dotecoin a certain momentum if it breaks over the level of resistance and possibly starts a bullish trend.

At the time of the letter, the price for Dogecoin was traded at $ 0.1693 and showed a profit of 0.32%in the last 24 hours.