As Dogecoin (DOGE) continues to experience market fluctuations, a series of “spinning top” candlesticks have appeared on the weekly chart, signaling moments of indecision.
Analyst Trader Tardigrade noted that the spinning top patterns observed between September and December 2024 may signal potential turning points for Dogecoin. He notes that this pattern could indicate a bottoming effect for the token, raising the possibility of a shift in momentum as the token moves closer to 2025.
RSI shows support amid price uncertainty
Alongside the spinning tops, the Relative Strength Index (RSI) has reached a key support level, adding to the intrigue surrounding Dogecoin’s price action. The RSI, which measures the magnitude of recent price changes to evaluate overbought or oversold conditions, suggests that Dogecoin may be at a critical juncture.
The ongoing formation of these spinning tops, combined with the RSI reaching support, raises questions about the sustainability of the current price movement. While the market has seen some upward momentum, these indicators call for caution as the trend may be nearing its limits.
Dogecoin whale activity provides additional context
In the past 48 hours, large Dogecoin holders, or “whales,” have been active, purchasing over 90 million DOGE as noted by crypto analyst Ali. This surge in activity corresponds with price movements. With the wallets of those holding between 100 million and 100 billion DOGE rising in correspoding with the cryptocurrency’s value.
However, the recent downturn in late December points to an element of uncertainty. As large holders reduced their activity and the price dropped, market sentiment appeared to shift.
Dogecoin price holds steady amid volatility
At the time of writing, Dogecoin was priced at $0.3195, recording an increase of 0.94% in the last 24 hours. Despite this gain, the token has been experiencing a period of volatility, with price fluctuations throughout the day.
However, the trading volume has shrunk by 6%, suggesting that investor excitement could be low. Despite a cooling of trading activity and a shift to side movements, the current situation reveals a crucial resistance level near $0.319.
Both landlords and tenants are now closely monitoring the asset’s ability to break through this level. The question remains whether the asset will successfully surpass the resistance or fail to do so.
Technical indicators: A mixed signal
In the technical analysis centered on Dogecoin’s 4-hour timeframe, the price is squeezing to touch the lower Bollinger Bands, aiming at the oversold position. The lower limit is $0.3079, and the upper limit is $0.3418, which means huge fluctuations between them.
Moreover, the MACD remains bearish, as the MACD line is placed below the signal line. However, there is still ambiguity on the short-term price of Dogecoin regarding a change of direction that might bring about a price reversal.
