Dogecoin has been on a shaky path these days, getting 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 through the center of the just-concluded week.
Nevertheless, that restoration was short-lived. Dogecoin has since dropped to round $0.17 previously 24 hours, and there’s the likelihood that it might dip even additional if promoting strain persists. But, regardless of the present pullback, a technical sign that has beforehand preceded main rallies this cycle is taking form on the weekly candlestick chart.
Weekly RSI Alignment With Candlestick Sample Mirrors Previous Bullish Breakouts
Dogecoin’s Relative Power Index (RSI) indicator has been on a loopy downtrend for months throughout a number of timeframes. Taking to social media platform X, crypto analyst Dealer Tardigrade highlighted an attention-grabbing phenomenon with the RSI indicator on Dogecoin’s weekly candlestick chart. The evaluation was made on Dogecoin’s weekly candlestick timeframe and appears on the meme coin’s worth motion since September 2023.
Notably, the analyst famous that the weekly RSI “suggests a powerful potential rebound from the present stage,” earlier than confidently including, “$Doge: $1 on the best way.”
DOGE market cap at present 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 an identical rally would possibly lastly take Dogecoin past the coveted $1 worth stage.
Picture From X: Dealer Tardigrade
Quick-Time period Divergence Strengthens Hopes Of Restoration
In a follow-up put up, 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 could quickly expertise a short-term aid from the downtrend.
This divergence signifies that momentum is step by step turning regardless of continued worth 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 worth, this might imply a bounce from the $0.17 stage if it manages to carry and a reset of the value motion heading into April. Nevertheless, a failure to take care of this stage on account of a scarcity of bullish momentum on the broader market could invalidate the short-term optimism and place Dogecoin beneath $0.17 in the beginning of April.
Featured picture from Gemini Imagen, chart from TradingView
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