Dogecoin has been navigating a tumultuous landscape recently, entering March with significant price declines and only sporadically gaining momentum before facing yet another setback. After starting the month on a downward trajectory, this meme-inspired cryptocurrency momentarily climbed to around $0.20 in the middle of the previous week. However, this recovery proved fleeting, as Dogecoin has dropped to approximately $0.17 in the past 24 hours, raising concerns about further declines if selling pressure continues.
Despite the short-lived drop, a bullish technical signal is emerging on the weekly candlestick chart, suggesting potential for recovery. Dogecoin’s Relative Strength Index (RSI) has displayed a significant downtrend across multiple timeframes. Notably, crypto analyst Trader Tardigrade pointed out an intriguing pattern forming on Dogecoin’s weekly candlestick chart, indicating a strong potential rebound from the current levels. Tardigrade confidently expressed optimism by stating, “$Doge: $1 on the way.” This highlights the kind of bullish sentiment that could play a vital role in Dogecoin’s recovery.
What strengthens this optimistic forecast is the convergence of technical patterns on Dogecoin’s weekly chart. Over the last two weeks, the cryptocurrency has printed both a Dogi and an inverted hammer on the weekly timeframe. Historically, these patterns, combined with the downward-trending RSI, have marked the onset of substantial price rallies. This specific setup has only manifested twice since September 2023: first in October 2023, leading to a price increase from $0.07 to $0.22 by March 2024, and again in September 2024, introducing a surge from $0.10 to $0.48 by December. Currently trading at $0.17, the market setup bears a resemblance to these past occurrences, igniting hopes for another price surge that could propel Dogecoin beyond the coveted $1 mark.
In a subsequent evaluation, Trader Tardigrade also highlighted a bullish divergence forming on Dogecoin’s hourly chart. This suggests that the cryptocurrency may be nearing its bottom, while the RSI indicates a shift toward upward momentum. According to Tardigrade, Dogecoin is poised for short-term relief after enduring persistent price weakness. Although the hourly chart’s divergence serves primarily as a short-term indicator, it could lay the groundwork for a more stable recovery if the prices manage to hold above $0.17.
For Dogecoin, maintaining its price above the $0.17 level is crucial as the market approaches April. A failure to uphold this level could signal a lack of bullish momentum across the broader market, potentially leading to further price drops below this threshold. As the cryptocurrency landscape remains volatile, watchers will keenly observe how Dogecoin reacts to these emerging trends and patterns.
