Dogecoin’s price has been a rollercoaster lately. After a rough start to March, it briefly rallied before dipping again. Currently hovering around $0.17, it could fall further if selling pressure continues. But a key technical indicator suggests a potential turnaround.
A Bullish Signal Emerges
A crypto analyst, Trader Tardigrade, noticed something interesting on Dogecoin’s weekly chart. The Relative Strength Index (RSI), a momentum indicator, shows a pattern that has previously signaled major price increases. This pattern, combined with specific candlestick patterns (Dogi and inverted hammer), has only appeared twice before since September 2023, both times preceding significant Dogecoin rallies.
- October 2023: Dogecoin jumped from $0.07 to $0.22.
- September 2024: Dogecoin rose from $0.10 to $0.48.
This same pattern is now present, leading the analyst to predict a potential surge towards $1.
Short-Term Hope: Bullish Divergence
Adding to the optimism, Trader Tardigrade also highlighted a bullish divergence on Dogecoin’s hourly chart. This means that while the price is still falling, momentum is actually improving – a sign that a bottom might be forming.
This short-term signal isn’t a guarantee of a long-term rally, but it suggests a possible bounce from the current $0.17 level. However, if Dogecoin can’t hold this level, the short-term bullish outlook could be invalidated.
The Bottom Line
While Dogecoin’s future remains uncertain, a confluence of technical indicators suggests a potential rebound. Whether this leads to the coveted $1 price point remains to be seen, but the current setup is certainly intriguing for Dogecoin investors.
