Dogecoin News Today: Dogecoin Forms Third Consecutive Bullish Engulfing Candle Signal

Dogecoin (DOGE) has formed its third consecutive monthly bullish engulfing candle, a technical pattern last seen before its 2021 price rally. This pattern, where a large bullish candle follows a smaller bearish one, is often interpreted by traders as a sign of potential trend reversal in a downtrend [1]. At the time of writing, Dogecoin was trading at $0.1977, hovering just above a key support level between $0.198 and $0.200 [1].

The recurring formation mirrors the setup observed in early 2020, which preceded a major price expansion. Trader Tardigrade noted that this is the third such candle since 2023, suggesting a continuation of the pattern that historically led to upward momentum [1]. DOGE remains within its long-term upward channel, currently sitting in the mid-lower range, which traders describe as a historical accumulation zone [1]. A continuation of bullish momentum could push the price toward $0.241 in the short term.

On-chain data also supports the potential for a price rebound. Over the past 24 hours, large holders—commonly referred to as “whales”—acquired more than 310 million DOGE, increasing their total holdings to 73.34 billion. This accumulation is frequently associated with long-term positioning and could signal increased confidence in DOGE’s value proposition [1].

Further technical support for a reversal comes from the 4-hour RSI, which is nearing oversold levels. Historically, similar RSI conditions have triggered a 70% price rebound, according to KrissPax, a market observer on social media [1]. With DOGE forming higher lows compared to its past breakout levels, the conditions for a renewed upward move appear to be taking shape.

While the bullish signals are encouraging, analysts caution that past patterns do not guarantee future performance. The current market environment differs from 2021, with macroeconomic and regulatory factors playing a more significant role in shaping crypto price dynamics. Traders remain cautious, emphasizing the need for confirmation through continued price action.

Some market participants have noted a bullish flag pattern on shorter timeframes, reinforcing the broader bullish signal from the monthly candle [3]. However, bearish risks persist. A monthly close below key levels would weaken the bullish narrative, as highlighted by an analysis on TradingView [2].

The 2021 surge, during which DOGE rose from near-cents to over $0.70, was preceded by a similar sequence of bullish engulfing candles. While history often offers insight, it is not a blueprint for the future. Market participants are increasingly adapting traditional technical tools to suit the evolving and volatile nature of cryptocurrency trading.

Source: [1] Dogecoin Closes Third Monthly Bullish Engulfing Candle (https://cryptofrontnews.com/dogecoin-closes-third-monthly-bullish-engulfin/)

[2] TradingView — Track All Markets India (https://in.tradingview.com/)

[3] Stockcoin and invest showing signs of life (https://www.facebook.com/groups/751073528414788/posts/2776546149200839/)