After a prolonged downtrend, Dogecoin’s technical indicators suggest a potential trend reversal, as the cryptocurrency forms a Diamond Bottom pattern. Additionally, the Price Momentum Oscillator (PMO) has entered bullish territory, further supporting the possibility of a price increase.
DOGE forms a diamond bottom reversal pattern
The Diamond Bottom pattern, a technical formation that signals a change in trend, has formed in the DOGE current trend. According to an analysis prepared by Trader Tardigrade, Dogecoin’s daily chart is showing signs of a potential reversal. The pattern’s development started in February before continuing until the end of March and April.
The diamond pattern exhibits a sudden price dip before entering an equilibrium phase, which extends throughout the diamond design. The price is likely to experience substantial growth in late April when it breaks out from the upper boundary. This pattern suggests an upcoming trend change where investors anticipate the price will reach approximately $0.285.
Price momentum oscillator signals a bullish trend
While the Diamond pattern takes shape, Dogecoin’s Price Momentum Oscillator (PMO) has crossed into bullish territory, showing signs of upward movement. The PMO, an indicator used to analyze momentum in price trends, has turned green, signaling a potential for price gains. This shift suggests that the cryptocurrency is entering a positive phase.
The bullish crossover indicates that Dogecoin’s momentum has reversed from a bearish trend. Such a crossover is taken as a signal to look for price increases. The bullish PMO crossover could lead to significant price movement. As the indicator stays green, the upward momentum may push Dogecoin prices higher. The green PMO signals the start of a potentially stronger bullish phase, further supporting the diamond bottom reversal plan.
Dogecoin price trend revealed
As of press time, the price of DOGE stands at $0.16612. The RSI is at 44.81; the indicator is in the middle of the range, which means it is not overbought or oversold. The MACD gives a bearish leaning, though the value stands at -0.00073 and the signal line is on the top of the MACD line, implying declining bullish pressure.
However, the latest MACD histogram portrays a positive signal which indicates that the stocks are likely to reverse in the short-term period. Given the presence of the Diamond Bottom pattern and the bullish crossover in the PMO, one may expect an upward movement of the Dogecoin price. These factors indicate that there could be a possibility of Dogecoin getting into a robust bullish phase in the future.
