Dogecoin (DOGE) price broke out of a Falling Wedge pattern on April 18, capturing market attention as the meme coin signaled a potential bullish reversal.

One technical indicator confirming this breakout is the Relative Strength Index (RSI).

Dogecoin’s RSI shifted decisively from bearish territory (below 50) to a bullish level above 50 on April 18.

This shift often marks a reversal in market sentiment, giving traders a technical green light to consider long positions.

The move aligns with Dogecoin’s price action, which saw a 10% jump from $0.137 to $0.15, according to CoinMarketCap data.

As price momentum picked up, so did investor confidence, with the RSI signaling that the rally could have room to run.

However, traders prefer to see RSI cross over 50 during a downtrend, which wasn’t the case in this instance.

Dogecoin trading volume also saw a significant increase, suggesting strong participation in the breakout.

CoinGecko reported a 50% rise in trading volume, reaching 1.2 billion DOGE traded on April 18, compared to a 7-day average of 800 million.

Simultaneously, Blockchain.com recorded a 20% rise in active addresses, now totaling 500,000, highlighting renewed on-chain interest.

This spike in user activity further confirms that this was not a false breakout but one supported by real market participation.

The impact of Dogecoin’s breakout was also felt by fellow meme coin Shiba Inu (SHIB), which experienced a 7% price bump, trading at $0.00