Dogecoin’s Four-Red Candle Setup Signals Imminent Mega Rally—Here’s Why
Dogecoin traders are eyeing a textbook reversal pattern after four consecutive red candles—a rarity that historically precedes explosive breakouts.
Market analyst ’CryptoHound’ points to DOGE’s stubborn hold above $0.12 as proof of accumulation: ’When retail panic meets institutional buy walls, fireworks follow.’
The meme coin’s 24-hour trading volume spiked 40% as derivatives traders piled into long positions, betting against what one skeptic called ’the same hopium that bankrupted my cousin during the 2021 shitcoin bubble.’
- Trader Tardigrade identifies four red candles on Dogecoin’s weekly chart, resembling late 2024’s bullish setup.
- MasterAnanda highlights Dogecoin’s perfect ABC correction from $0.4846 to $0.1298, forecasting a $0.703 rally.
- Ali Martinez stresses reclaiming $0.20 monthly close is crucial for sustaining Dogecoin’s long-term bullish trend.
A wave of Optimism is sweeping through the Dogecoin community as several top analysts point to a potential massive breakout. Trader Tardigrade has drawn attention to a striking pattern on the weekly Dogecoin chart using the Gaussian Channel. The current formation, he notes, mirrors a setup that led to a strong bullish rally in late 2024.
Looking back, Dogecoin formed four red candles inside the green mid-band of the Gaussian Channel in the final months of 2024. Following that, the asset surged upwards significantly. Now, an identical sequence of four red candles has appeared again in April 2025. This repetition is raising hopes among investors for another major breakout.
Trader Tardigrade highlights that this week’s candle is starting to turn green, signaling a possible reversal from the recent downward trend. A green candle close above the mid-band could act as a confirmation of a new upward movement. The projected trendline resistance is estimated NEAR the $1 mark.
Dogecoin Weekly Chart with the Gaussian Channel shows four completed red candles, with the current week’s candle potentially passing through the mid-band, forming a green candle. Trendline resistance targets the price near the $1 mark,” he emphasized.
Final Buying Call for Dogecoin
A separate analysis from MasterAnanda, published on April 27 through TradingView, suggested an ideal buying window for DOGE. MasterAnanda pointed out that it has completed an ABC price correction perfectly, a move that typically sets the stage for a bullish impulse wave.
For perspective, the token began this correction after hitting a peak of $0.4846 on December 8. The first wave slashed the price by 46% to $0.2626. This was followed by a 66% rebound during the B-wave, pushing prices up to $0.4350 in January. Finally, a sharp 70% drop during the C-wave brought it down to strong support at $0.1298.
Even though Doge has climbed significantly from that low, MasterAnanda believes the asset remains undervalued. His analysis forecasts a potential rally to $0.703, claiming that this is the final call for investors to buy.
$0.20 Holds the Breakout Key
While excitement grows, another respected analyst, Ali Martinez, offers a slightly more cautious but hopeful outlook. In the recent analysis, Martinez stressed that for Dogecoin to sustain an extended rally, the asset needs to reclaim the $0.20 level on a monthly close. This milestone would signal real strength in the ongoing recovery.
Martinez pointed out that the $0.20 mark corresponds to the lower boundary of an ascending wedge pattern that DOGE has traded within since 2017. Recent bearish momentum pushed it below this channel, but a climb back above could reignite strong upward momentum according to his observations.
The broader sentiment from analysts reveals a strong underlying belief that DOGE is on the brink of a major move. However, key resistance points must be conquered to confirm the trend. If the green candle holds, and the $0.20 level is reclaimed, there could be little stopping Dogecoin’s run toward the much-anticipated $1 target.
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