Dogecoin forms Bullish Harami after downtrend, indicating possible early-stage reversal.
Price holds above $0.20 with stable volume, suggesting renewed buying interest near recent lows.
Over 818,000 DOGE added to portfolios as market retests support and flips key trendlines.
Dogecoin's latest daily candle closed with a Bullish Harami pattern variation. This pattern is known to appear after a downtrend and features a large bearish candle followed by a smaller bullish candle within its range. In crypto, the gapped-up formation is not required due to continuous trading.
Bullish Harami Pattern Forms After Prolonged Downward Movement
According to an analysis prepared by Trader Tardigrade, Dogecoin has printed a Bullish Harami variation on the daily chart. The pattern appeared after a multi-day downtrend between July 27 and August 2.
https://twitter.com/TATrader_Alan/status/1952170915904782800
The first candle was a large red bar followed by a smaller green candle that closed within the range of the first. This technical structure often signals that selling pressure may be weakening while buyer activity increases.
The green candle on August 3 closed higher than the previous day's close. Dogecoin reached a low near $0.19 before reversing. The pattern formed around a 24-hour range of $0.1959 to $0.2038. The daily closing price stood at $0.2021, marking a 3.0% increase.
Market Structure Holds as Price Recovers Above Support
Dogecoin's market capitalization reached $30.38 billion, according to CoinGecko data. Trading volume stood at $1.43 billion in the last 24 hours. The coin’s circulating supply remains steady at 150.36 billion tokens. Buying activity remained stable throughout the day, with price action holding above the $0.20 support level.
According to an observation by Chris, Dogecoin recently retested the bull market support band and flipped the downtrend line into support. He stated, “This might have just been the ultimate shakeout before the real fun up.” Market participants also added over 818,000 DOGE to their portfolios.
Analysts often view the Bullish Harami as an early sign of reversal. However, further confirmation through price continuation is typically required. While volume during the pattern formation was not shared, increased buying on the second day may support the pattern’s potential to mark a base for an upward move.
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