A well-known cryptocurrency expert anticipated an upward trend for Dogecoin on Tuesday, after a false breakout in the dog-themed memecoin’s trend.
What Happened: A user on X named Trader Tardigrade, who is known for being very positive about Dogecoin, noticed that the coin made a fake breakout for the first time since December 2024.
“It is remaining above the support zone for days, verifying the traits of a failed breakout,” the chartist mentioned. “A new DOGE rally could start from this failed breakout.”
False Breakout in Dogecoin
False breakouts happen when the price moves in a way that makes traders assume that a trend is changing, but then quickly reverses, causing big price changes in the reverse direction. In this example, Trader Tardigrade pointed out that Dogecoin stayed above the support level of $0.153, which led them to predict a price turnaround and a potential rise.
The positive outlook was reflected in DOGE’s future market as well. Around 55% of Binance traders with open DOGE positions were in the market, indicating anticipation for a recovery, according to the Coinglass data.
On the other hand, the Awesome Oscillator, a popular tool for tracking market momentum by comparing recent and past price movements, showed a “Sell” signal for Dogecoin, according to TradingView. Also, the Relative Strength Index, which helps identify whether a market is overbought or oversold, was showing a “Neutral” signal at the time.
Why It Matters: The predictions surfaced as Dogecoin dropped overnight on Tuesday; the drop came during a wider market correction as the cryptocurrency market followed the stock futures, which dropped when news came out that China had imposed new restrictions on Nvidia’s chips.
According to IntoTheBlock, High-value transactions worth above $100,000 surged 41% in the past 24 hours, while the daily engagement address count increased 35%.
Price Action: At the time of reporting, Dogecoin was transacted at $0.1558, which dropped 2.45% in the past 24 hours. So far this year, the meme coin has fallen by 51.96%.
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