Dogecoin (DOGE) has faced volatile price action in March, briefly reclaiming $0.20 before dipping back to $0.17. Despite the recent pullback, technical indicators suggest a potentially strong rebound, with the Relative Strength Index (RSI) flashing a bullish signal on the weekly candlestick chart.
RSI and Candlestick Pattern Indicate Potential Rally
According to crypto analyst Trader Tardigrade, Dogecoin’s weekly RSI alignment is forming a pattern that previously led to major breakouts in this cycle. The analyst highlighted that:
- Dogecoin has printed both a Doji and an inverted hammer on the weekly chart.
- Similar patterns in October 2023 and September 2024 led to price surges from $0.07 to $0.22 and $0.10 to $0.48, respectively.
- With DOGE currently at $0.17, a repeat of past trends could propel it beyond the $1 mark.
Short-Term Divergence Strengthens Recovery Hopes
Trader Tardigrade also identified bullish divergence on Dogecoin’s hourly chart, signaling that:
- DOGE might be finding a bottom, despite continued downward pressure.
- If this trend holds, Dogecoin could see a short-term bounce from $0.17 heading into April.
- However, if the broader market lacks bullish momentum, DOGE could drop below $0.17.
Will Dogecoin Break Out or Face Further Downside?
The RSI and candlestick setup suggest that Dogecoin could be primed for a breakout, but price action in the coming weeks will be crucial. If DOGE maintains support at $0.17 and follows historical trends, $1 could finally be in sight. Conversely, failure to hold this level could invalidate short-term optimism and lead to further declines.
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