Dogecoin (DOGE) Analyst Predicts a Possible Bullish Run Following a False Break

A widely followed cryptocurrency analyst predicted a possible bull run for Dogecoin (CRYPTO: DOGE) on Tuesday, following a false break in the dog-themed memecoin’s trajectory.

What Happened: Trader Tardigrade, an X user who is followed by over 214,000 people for their bullish outlook on Dogecoin, noticed that the coin has made a false break for the first time since December 2024.

“It’s staying above the support line for days, confirming the characteristics of a false break,” the chartist stated. “A new $DOGE bull run could start from this false break.”

As the term implies, false breakouts trick traders into believing that a trend is shifting, only for the price to reverse swiftly, resulting in significant price movements in the opposite direction. In the above example, Trader Tartigrade highlighted DOGE’s persistence above the support level at $0.153, leading them to publish a bullish reversal forecast.

#Dogecoin Makes a False Break for the First Time Since Dec 2024 🔥It's staying above the support line for days, confirming the characteristics of a false break. A new $DOGE bull run could start from this false break 🚀 pic.twitter.com/e8ui5FuFxV— Tardivgrade (@Tardivgrade) September 5, 2024The bullish sentiment was seen in DOGE’s derivative markets as well. According to data from Coinglass, about 55% of Binance traders who had active DOGE positions were betting on the coin to rise further.

Also Read: Is A Dogecoin Breakout Imminent As A Massive 60,000 ETH Is Moved Out Of Coinbase In Biggest Crypto Transfer Today?

On the other hand, the Awesome Oscillator, a well-known momentum indicator that compares recent market movements to historical market movements, flashed a “Sell” signal for the memecoin, as per TradingView. Additionally, the Relative Strength Index, used to spot overbought and oversold conditions, was “Neutral” at the time of writing.

Why It Matters: The projections come as Dogecoin fell overnight on Tuesday, the decline came amid a broader correction as the cryptocurrency market followed stock futures that fell as news broke that fresh China chip curbs had been imposed on Nvidia (NYSE:NVDA).

According to crypto analytics firm IntoTheBlock, large transactions valued at over $100,000 spiked 41% in the last 24 hours, while the daily active address count rose 35%.

Price Action: At the time of press, Dogecoin was trading at $0.1558, down 2.45% over 24 hours, according to Benzinga Pro. Year-to-date, the meme coin has decreased by 51.96%.