Renowned crypto trader Ali Martinez has released a new update suggesting that Dogecoin could be preparing for a large price upswing. In his latest chart shared on X, Martinez draws attention to the stock RSI on the weekly timeframe.
The stock RSI appears poised for a bullish crossover, a signal that has historically preceded major Dogecoin rallies. “Dogecoin is about to go parabolic. Historically, when the stock RSI has a bullish crossover on the weekly chart, Dogecoin tends to undergo a significant price rebound,” Martinez states. He points out that whenever this oscillator crosses bullish on the weekly chart, DOGE typically experiences notable price spikes.
“For instance, in October 2023, when the stock RSI had a bullish crossover, Dogecoin surged by 88%.In February 2024, the same thing happened. After the stock RSI had a bullish crossover, Dogecoin surged by 187%. Even in July 2024, Dogecoin rose by 56% after the stock RSI had a bullish crossover. And in September 2024, the price increase was more significant. Dogecoin skyrocketed by 444% after the stock RSI had a bullish crossover on the weekly chart,” the analyst adds.
Dogecoin On The Brink Of A Breakout
Martinez also indicates that the current weekly candlestick is attempting to form a doji, a candle with a very small real body that often signals a potential trend reversal, especially when followed by a confirming second candle. “DOGE is printing a potential bullish reversal doji on the weekly chart!” Martinez writes via X.
While it is still too early to call a doji star pattern because the weekly candle will not officially close until Sunday, and the second candle required for confirmation has yet to form, it’s a promising signal for DOGE bulls. If the ongoing candle preserves its slim real body by the end of the week, and if next week’s candle confirms this formation, Dogecoin could be setting up for a textbook bullish reversal scenario.
From a pure price-action perspective, Dogecoin opened this week near $0.16798, reached a high of $0.18082, dipped as low as $0.14297, and has since rebounded toward $0.16766. The tight net change so far explains why the current candlestick appears like a doji, reflecting indecision between buyers and sellers.
However, four days remain until the weekly close; intraday volatility could widen or tighten the real body and potentially negate the pattern. Because doji candles often arise during transitional market phases, any upward or downward momentum can quickly distort the candle’s shape.
Although Martinez’s analysis underscores a potential parabolic move, it is important to stress that confirmation is critical. The second weekly candle for the Doji Star has not yet formed, and the current doji-like candle could vanish if the market experiences a significant shift before Sunday.
Traders watching DOGE over the weekend will need to pay close attention to whether it manages to hold its ground near present price levels, thereby preserving a minimal difference between the open and close of the weekly candlestick. If that occurs and next week’s candle underscores renewed buying pressure, then the Doji Star pattern would be confirmed, potentially foreshadowing a burst to the upside.
For now, the market remains in wait-and-see mode. With the stock RSI seemingly ready to cross bullish, the coming days may prove pivotal in determining whether Dogecoin truly is on the cusp of another parabolic upswing.
At press time, DOGE traded at $0.16996.
