Dogecoin shows signs of rebound after oversold levels

Dogecoin's (CRYPTO:DOGE) price may be shifting after a week-long decline, as technical indicators on the 4-hour Heikin Ashi chart suggest a potential recovery.

The Relative Strength Index (RSI) has dipped into oversold territory, and a falling wedge pattern has emerged near a support zone, both signaling a possible bullish reversal.

Over the past seven days, Dogecoin has consistently declined after failing to reclaim the $0.20 level, dropping to around $0.1615.

According to crypto analyst Trader Tardigrade, the RSI’s swift transition from overbought to oversold highlights strong selling pressure.

The falling wedge pattern is traditionally seen as a bullish signal when paired with oversold momentum indicators.

Trader Tardigrade noted that Dogecoin has started showing early signs of breaking out of this wedge, with three consecutive green candles on the 4-hour timeframe.

These developments suggest that a short-term rebound could be underway in April.

Dogecoin posted its most bearish first quarter in seven years, losing 46% from January through March.

The only worse Q1 performance was in 2018, when it fell by 68.8%.

This historical context adds significance to the current price movement as traders assess the likelihood of a recovery.

Analysts remain cautious due to Dogecoin’s volatility and broader market conditions.

However, bullish patterns and oversold signals offer the potential for a short-term upward trend.

While technical indicators suggest possible gains, traders are advised to monitor developments for confirmation of a breakout or continued bearish trends.

At the time of reporting, the Dogecoin (DOGE) price was $0.1691.