Dogecoin ( DOGE ) is showing strong signs of a potential recovery following a period of short-term weakness, with both technical and on-chain indicators suggesting a short-term momentum shift. Notably, pseudonymous analyst Trader Tardigrade has identified an approaching bullish MACD crossover on the four-hour chart, a technical signal that suggests the cryptocurrency may be preparing for a recovery. This has sparked interest among traders, with many closely monitoring for confirmation of a potential upward trend in the near term. Technical analysis signals a bullish shift From a technical perspective, the MACD indicator is signaling a bullish crossover, indicating a shift in momentum from bearish to bullish, often viewed as a precursor to price rallies. The price action has also reflected this shift, as DOGE has rebounded from lows near $0.29 to trade around $0.34 at the press time, suggesting that the cryptocurrency is gaining upward traction. DOGE price analysis chart. Source: TraderTardigrade/X Adding to the bullish sentiment, crypto market analyst Ali Martinez noted in a recent post on X that Dogecoin whales accumulated 460 million tokens during the recent market dip. This significant activity highlights a ‘buy-the-dip’ strategy among large-scale investors, suggesting further gains for the cryptocurrency. For traders and investors, these indicators suggest a promising short-term outlook, with DOGE likely to test key resistance levels at $0.35 and $0.37. A break above critical resistance near $0.41 could trigger a parabolic rally, mirroring previous bull runs. Derivative data indicates a shift in momentum for DOGE Market derivatives data further supports the case for a short-term momentum shift. Open interest has risen by 0.20%, while options open interest has surged 33.11%, signaling growing market participation and bullish positioning. DOGE Derivatives data. Source: CoinGlass Moreover, $2.56 million in short liquidations highlights the pressure on bearish traders, increasing the likelihood of a short squeeze that could amplify upward momentum. Although trading volume has declined, this may signal the end of a consolidation phase, creating favorable conditions for a breakout. DOGE price analysis chart As of press time, DOGE is trading at $0.33, reflecting a 1.9% gain over the past 24 hours. However, the meme coin remains down 13% on the weekly chart. DOGE one-day price chart. Source: Finbold With bullish technical patterns, significant whale accumulation, and strengthening derivatives’ data, DOGE appears positioned for a potential rebound. Market participants should closely monitor key resistance levels and overall market sentiment to gauge whether the cryptocurrency can maintain its upward momentum in the near term. Featured image via Shutterstock The post This pattern signals a ‘short-term momentum shift’ for Dogecoin appeared first on Finbold .
