Dogecoin has been on a shaky path these days, coming into March with a steep decline and solely briefly reclaiming momentum earlier than stumbling once more. After beginning the month in a downtrend, the meme coin managed to climb again to the $0.20 mark throughout the center of the just-concluded week.
Nonetheless, that restoration was short-lived. Dogecoin has since dropped to round $0.17 up to now 24 hours, and there’s the likelihood that it may dip even additional if promoting strain persists. But, regardless of the present pullback, a technical sign that has beforehand preceded main rallies this cycle is taking form on the weekly candlestick chart.
Weekly RSI Alignment With Candlestick Sample Mirrors Previous Bullish Breakouts
Dogecoin’s Relative Power Index (RSI) indicator has been on a loopy downtrend for months throughout a number of timeframes. Taking to social media platform X, crypto analyst Dealer Tardigrade highlighted an fascinating phenomenon with the RSI indicator on Dogecoin’s weekly candlestick chart. The evaluation was made on Dogecoin’s weekly candlestick timeframe and appears on the meme coin’s value motion since September 2023.
Significantly, the analyst famous that the weekly RSI “suggests a robust potential rebound from the present stage,” earlier than confidently including, “$Doge: $1 on the way in which.”
DOGE market cap presently at $25 billion. Chart: TradingView.com
What makes this extra than simply one other prediction is the technical confluence forming on the weekly candlestick chart. Over the previous two weeks, Dogecoin has printed each a Dogi and an inverted hammer on the weekly timeframe; patterns that, mixed with a declining RSI, have marked the start of highly effective rallies this cycle.
This similar mixture has solely occurred twice earlier than since September 2023. The primary was in October 2023, when Dogecoin surged from $0.07 to $0.22 by March 2024. The second occasion got here in September 2024, previous a transfer from $0.10 to $0.48 by December. Now buying and selling at $0.17, the present setup has once more lined up in acquainted style, and the same rally would possibly lastly take Dogecoin past the coveted $1 value stage.
Picture From X: Dealer Tardigrade
Brief-Time period Divergence Strengthens Hopes Of Restoration
In a follow-up submit, Dealer Tardigrade additionally pointed to bullish divergence forming on Dogecoin’s hourly chart. “Dogecoin is discovering its backside while RSI indicators Bullish Divergence on hourly chart,” he wrote, including that the coin might quickly expertise a short-term aid from the downtrend.
This divergence signifies that momentum is progressively turning regardless of continued value weak spot. The divergence on the hourly candlestick chart is a short-term sign. Though short-term indicators alone aren’t sufficient to ensure a long-term rally, they’ll function the primary affirmation {that a} backside is forming.
Picture From X: Dealer Tardigrade
For Dogecoin’s value, this might imply a bounce from the $0.17 stage if it manages to carry and a reset of the worth motion heading into April. Nonetheless, a failure to take care of this stage as a result of an absence of bullish momentum on the broader market might invalidate the short-term optimism and place Dogecoin under $0.17 firstly of April.
Featured picture from Gemini Imagen, chart from TradingView
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