Dogecoin has been hovering around the $0.17 price mark and has found it challenging to gain bullish momentum in a market that continues to be predominantly bearish. Cryptocurrency prices have been declining across the spectrum, with Bitcoin and other significant assets exhibiting signs of fatigue.
In the midst of this decline, a recent event indicates that a turnaround could be in the works for the meme coin. This new information is highlighted by Dogecoin’s latest weekly closure, which concluded with a candlestick frequently linked to trend reversals.
Dogecoin Ends Week With Doji Candle: What Does This Indicate?
Dogecoin wrapped up last week with a Doji candle, characterized by a lengthy lower wick and a slender body. Notably, crypto analyst Trader Tardigrade pointed out on the social media platform X that this Doji weekly closure is a significant occurrence for Dogecoin, taking into account what transpired the last time the meme coin experienced such a weekly close. According to Trader Tardigrade, this particular closure could signify the conclusion of the ongoing downtrend and a possible transition towards recovery.
A Doji candle is formed when the opening and closing prices are almost indistinguishable, reflecting market ambivalence. Consequently, the latest weekly Doji candle illustrates the uncertainty DOGE experienced last week as the bulls attempted to avert a continuing price drop from the prior week.
In the instance of the recent Dogecoin Doji candle, this particular candle has a more extended lower wick compared to the upper wick. This is due to the week commencing on a sustained drop from the previous one, effectively pushing DOGE to a low of $0.142, marking its lowest level in four months. Nevertheless, the Dogecoin price ultimately concluded the week at $0.16818, slightly above its opening price of $0.16802.
DOGE’s Record With Doji Candles And Price Climb
Trader Tardigrade emphasized that the last occasion Dogecoin produced a Doji on the weekly timeframe, it led to a marked price surge. As illustrated by the DOGE weekly candlestick timeframe chart above, the last instance of such a Doji occurred in the first week of October 2024. At that time, Dogecoin concluded the week at approximately $0.11. Following this closure, the meme coin experienced a 340% rally that persisted for the ensuing eight weeks, achieving a multi-year peak of $0.486.
The pressing question now is whether this configuration will unfold similarly in the current landscape or if the prevailing bearish sentiment will overshadow any possibility of a reversal. Unlike October 2024, the current market conditions are predominantly bearish, with cryptocurrency assets struggling to maintain stability amid continual selling pressure.
While this Doji weekly candlestick by itself isn’t sufficient to confirm an uptrend, the optimistic view is that Dogecoin could replicate its past performance. A similar 340% rally from the latest Doji close of $0.16818 would set DOGE at a price objective of $0.75.
At the time of this writing, Dogecoin is priced at $0.1740.
Featured image courtesy of Unsplash, chart provided by Tradingview.com
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