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.
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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.
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.
The post Dogecoin Closes Third Monthly Bullish Engulfing Candle, This Pattern Last Appeared Before the 2021 Rally appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
