Dogecoin Shows Third Monthly Bullish Engulfing Candle Amid Whale Accumulation and RSI Signals

• Dogecoin completes third monthly bullish engulfing candle, mirroring the 2020 rally pattern.

• Whales accumulate over 310 million DOGE as price stabilizes above key support between $0.198 and $0.200.

• DOGE’s 4-hour RSI approaches oversold territory, historically preceding a 70% price surge.

Dogecoin’s third monthly bullish engulfing candle, whale accumulation surge, and RSI trends signal a potential rally. Stay updated with COINOTAG for the latest crypto insights.

What Does Dogecoin’s Third Monthly Bullish Engulfing Candle Indicate?

Dogecoin’s third monthly bullish engulfing candle signals a continuation of a historically bullish pattern first seen in early 2020. This formation often precedes significant upward price movements, suggesting that DOGE may be poised for another rally. Currently trading near $0.1977, DOGE remains above critical support levels, reinforcing this positive outlook.

How Is Whale Accumulation Impacting Dogecoin’s Momentum?

Whale wallets have increased their holdings by over 310 million DOGE in the past 24 hours, raising total whale-held DOGE from 72.65 billion to 73.34 billion. This accumulation typically reflects long-term confidence and can provide upward price pressure. The price holding steady above $0.198-$0.200 support further supports this momentum.

Why Is the RSI Level Important for Dogecoin’s Price Action?

The 4-hour Relative Strength Index (RSI) for DOGE is approaching the oversold zone, a level that historically triggered a 70% price rebound. According to market analyst KrissPax, previous dips below RSI 30 have led to substantial rallies. DOGE’s current higher lows compared to past breakout points suggest a similar setup may be unfolding.

What Are the Key Support Levels for Dogecoin Right Now?

Dogecoin’s key support lies between $0.198 and $0.200, a zone that has historically acted as a strong accumulation area. The recent price rebound above this range, combined with bullish engulfing patterns on lower timeframes, suggests that buyers are defending this level effectively. This support is critical for sustaining upward momentum.

How Does Dogecoin’s Current Price Channel Affect Its Outlook?

DOGE remains within its long-term upward price channel, currently positioned near the mid-lower range. This placement aligns with previous accumulation phases that led to significant price expansions. Maintaining this channel is essential for bullish continuation, with short-term targets around $0.241 if buying pressure persists.

Frequently Asked Questions

What is the significance of Dogecoin’s monthly bullish engulfing candle?

This candle pattern reflects strong buying momentum and has historically preceded major price rallies in Dogecoin, indicating potential bullish continuation.

How do whales influence Dogecoin’s market trends?

Whales accumulate large DOGE amounts, signaling confidence and often triggering upward price movements due to increased demand and reduced supply.

Key Takeaways

• Third monthly bullish engulfing candle: Mirrors 2020 pattern, signaling potential rally.
• Whale accumulation exceeds 310 million DOGE: Indicates strong long-term buying interest.
• RSI nearing oversold territory: Historically precedes significant price rebounds.

Conclusion

Dogecoin’s formation of a third monthly bullish engulfing candle, combined with substantial whale accumulation and an RSI approaching oversold levels, strongly suggests a potential upward price movement. Maintaining support between $0.198 and $0.200 is crucial for this momentum. Investors should monitor these technical indicators closely as DOGE may be positioned for a significant rebound in the near term.

Dogecoin forms its third monthly bullish engulfing candle as whale accumulation rises and RSI nears levels that preceded a 70% rally.

• Dogecoin forms its third monthly bullish engulfing candle, resembling the 2020 pattern before its rally.

• Whales accumulate over 310M DOGE as price holds above key support between $0.198 and $0.200.

• DOGE’s 4HR RSI nears oversold zone, a level that previously triggered a 70% price rebound.

Dogecoin (DOGE) closed its latest monthly candle with a third bullish engulfing pattern, continuing a recurring formation seen in previous cycles. This pattern appeared during DOGE’s 2020 setup, which preceded a major price expansion. At the time of writing, Dogecoin was trading at $0.1977, just above key support near $0.195.

Bullish Monthly Structure Signals Potential Continuation

According to analysis prepared by Trader Tardigrade, Dogecoin has completed its third monthly bullish engulfing candle since 2023. This structure is similar to the three-stage formation seen in early 2020 before the token surged. 

Historical price action indicates that these patterns often precede larger trend shifts in the market. DOGE’s position inside its long-term upward channel remains intact, with the price currently near the channel’s mid-lower range. 

Market observers have described this area as a historical accumulation zone. The recent bullish candle formed above $0.20, further supporting the possibility of a bounce. If buying continues, projections suggest a move towards $0.241 in the short term.

Support, Whale Accumulation, and RSI Behavior Offer Momentum Clues

Dogecoin recovered from a drop to $0.196, reclaiming the $0.20 level. This bounce formed a bullish engulfing pattern on lower timeframes. A popular long setup currently targets $0.20431, with support seen between $0.198 and $0.200.

On-chain metrics support a growing accumulation trend. In the past 24 hours, whales added over 310 million DOGE, raising holdings from 72.65 billion to 73.34 billion. This behavior is often linked to long-term positioning. Meanwhile, RSI levels on the 4-hour chart are nearing oversold territory, historically a setup for potential upward movement.

Source: KrissPax(X)

According to an observation by KrissPax, the last time DOGE’s 4HR RSI dropped below 30, the price rallied more than 70%. The same condition may be developing again, with DOGE now forming higher lows compared to its past breakout levels.