Dogecoin (DOGE) Latest Price Formations Suggest an Early-Stage Recovery Might Be Underway

Dogecoin price has been performing poorly for the past five months, but recent price formations suggest that an early-stage recovery might be underway. The observations come from crypto analyst Trader Tardigrade, who recently shared two updates based on patterns forming on the 1-hour and 4-hour candlestick charts.

Symmetrical Triangle Builds Quiet Momentum For Dogecoin

The first analysis focused on a symmetrical triangle forming on the 4-hour timeframe. This pattern has been seen playing out since April 8, with the cryptocurrency’s price gradually narrowing into the apex of the structure.

According to the analyst, the longer the price continues to consolidate inside this triangle, the more momentum builds for an eventual breakout. This could mark the beginning of a sustained rally.

“Symmetrical triangle forming on the 4-hour.

This pattern has been patiently building for a while now, and the price is slowly squeezing into the apex.

The symmetrical triangle is a continuation pattern that is known for quiet volatility and a potential strong breakout.”

Falling Wedge Breakout And RSI Point To Positivity On 1-Hour Timeframe

Shifting the focus to the lower timeframe, the crypto analyst identified a falling wedge breakout on the 1-hour chart in another analysis. This breakout coincided with a recovery from the oversold zone on the RSI indicator.

“#Dogecoin 1-hour:

Falling wedge breakout, and RSI bouncing from oversold.

Could be setting up for some short-term positivity.

Keep an eye on the symmetrical triangle on the 4-hour for the next move.”

Falling wedges are often encountered as bullish reversal indicators, and the breakout from this formation is one of the first signs that Dogecoin might be preparing for a broader trend shift. The broader trend has been a bearish one for the past six weeks or so, and a trend shift will be a change into bullish momentum. The RSI bouncing from the oversold level further supports the case for growing bullish strength in the short term, although trading volume is still subdued for now.

However, there is still a need for bullish confirmations. The symmetrical triangle’s upper boundary will need to be broken with a strong candlestick close and accompanying volume for the bullish case to take full shape. A huge trading volume contributes to the prospect of a strong upside move.