Rewritten Content
Dogecoin’s Price Rebound: Is $1 on the Way?
Dogecoin has been on a shaky path lately, entering March with a steep decline and only briefly reclaiming momentum before stumbling again. After starting the month in a downtrend, the meme coin managed to climb back to the $0.20 mark during the middle of the just-concluded week. However, that recovery was short-lived. Dogecoin has since dropped to around $0.17 in the past 24 hours, and there’s the possibility that it could dip even further if selling pressure persists. Yet, despite the current pullback, a technical signal that has previously preceded major rallies this cycle is taking shape on the weekly candlestick chart.
Weekly RSI Alignment With Candlestick Pattern Mirrors Past Bullish Breakouts
Dogecoin’s Relative Strength Index (RSI) indicator has been on a crazy downtrend for months across multiple timeframes. Taking to social media platform X, crypto analyst Trader Tardigrade highlighted an interesting phenomenon with the RSI indicator on Dogecoin’s weekly candlestick chart. The analysis was made on Dogecoin’s weekly candlestick timeframe and looks at the meme coin’s price action since September 2023.
Particularly, the analyst noted that the weekly RSI "suggests a strong potential rebound from the current level," before confidently adding, "$Doge: $1 on the way."
Short-Term Divergence Strengthens Hopes Of Recovery
In a follow-up post, Trader Tardigrade also pointed to bullish divergence forming on Dogecoin’s hourly chart. "Dogecoin is finding its bottom whilst RSI signals Bullish Divergence on hourly chart," he wrote, adding that the coin may soon experience a short-term relief from the downtrend.
This divergence indicates that momentum is gradually turning despite continued price weakness. The divergence on the hourly candlestick chart is a short-term signal. Although short-term signals alone are not enough to guarantee a long-term rally, they can serve as the first confirmation that a bottom is forming.
Conclusion
In conclusion, while Dogecoin’s price has been on a decline, a technical signal that has previously preceded major rallies this cycle is taking shape on the weekly candlestick chart. The short-term divergence on the hourly chart also suggests that momentum may be gradually turning, which could lead to a short-term relief from the downtrend. However, a failure to maintain the current level due to a lack of bullish momentum on the broader market may invalidate the short-term optimism and place Dogecoin below $0.17 at the beginning of April.
FAQs
Q: What is the current price of Dogecoin?
A: The current price of Dogecoin is around $0.17.
Q: What is the technical signal that is taking shape on the weekly candlestick chart?
A: The technical signal is the alignment of the RSI indicator with the candlestick pattern, which has previously preceded major rallies this cycle.
Q: What is the short-term divergence on the hourly chart?
A: The short-term divergence is a signal that momentum is gradually turning despite continued price weakness.
Q: What is the potential outcome if Dogecoin fails to maintain the current level?
A: If Dogecoin fails to maintain the current level, it could dip even further, potentially below $0.17 at the beginning of April.
Q: Who is Trader Tardigrade and what is his prediction for Dogecoin’s price?
A: Trader Tardigrade is a crypto analyst who has predicted that Dogecoin’s price could reach $1 if the current technical signal is validated.
