This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

A softer-than-expected U.S. PPI pushed bitcoin BTC$113,975.90 past $113,600, confirming the bullish inverse head and shoulders pattern highlighted earlier this week.

The breakout signals the end of the recent pullback from record highs above $124,000 and the resumption of the broader rally. Using the measured move technique, which adds the distance between the pattern’s low and the breakout point to the breakout level, suggests bitcoin could reach nearly $120,000.

The ascending 50-, 100-, and 200-hour simple moving averages (SMAs) support the bullish momentum gathering strength. Additionally, the daily chart’s MACD histogram crossing above zero further confirms a positive shift in market sentiment.

On the upside, bulls may encounter resistance near the heavily watched 50-day SMA at $114,700, while on the downside, the recent higher low at around $110,000 serves as a key level for bears to challenge.

As shown in our previous market review, altcoins are still struggling. The market is moving toward an infliction point as the next move could be fundamental for multiple assets. Solana is showing signs of rally exhaustion, Ethereum is entering a potential stalemate. But despite the negative altcoin scene, Bitcoin might be pushing higher with a new bullish pattern.

Bitcoin’s key pattern

Bitcoin might be forming the cup-and-handle, one of the most well-known bullish patterns in technical analysis. Although not yet confirmed, the pattern appears on the daily chart, indicating that after weeks of volatile price action, digital gold may be getting ready for a brief reversal.

BTC fell, consolidated and then steadily recovered to retest resistance levels close to $114,000 during the cup part of the pattern, which seems to have formed between mid-August and early September. The subsequent brief decline is comparable to the start of the handle, a period of consolidation that frequently comes before a breakout. Key factors right now are:

• Technically speaking, Bitcoin might surpass the $114,000 resistance and aim for the $118,000-$120,000 range if the handle completes and buyers enter with conviction.
• The 50-day EMA, which has been capping rallies in recent weeks, is in that zone.
• Following a correction that pulled Bitcoin from highs above $124,000, a successful breakout would both confirm the cup-and-handle and reestablish bullish momentum. The setup is far from risk-free, though.
• Bitcoin is susceptible to a deeper retracement toward $104,000, the 200-day EMA, and a critical structural level for long-term investors if the pattern fails to hold the $110,000-$108,000 support area.

Short-term traders of Bitcoin should monitor the $114,000 neckline. BTC’s next leg higher could be launched from current consolidation if a breakout above it solidifies the mini cup-and-handle formation.

Ethereum’s pivotal level

The price structure of Ethereum is at a turning point. Ethereum has deviated from its steady wave-like pattern of higher highs and higher lows for the first time since its spectacular rally started earlier this summer. The asset is currently trending sideways rather than upward, which may be an early indicator of an impending reversal.

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Both the 20-day and 50-day EMAs have been supporting Ethereum’s strong upward channel since mid-July. New purchases followed each decline, resulting in a stairway rally that saw ETH reach $4,800. Recent candles, however, show a divergence from that bullish trend. With ETH struggling to regain its momentum, the price action has flattened and is now trapped between $4,200 and $4,500.

What this sideways move suggests is what investors are worried about. Strong upward trends usually indicate waning demand and give way to bearish momentum when they lose their rhythm. The next reasonable support level for ETH, if it drops below $4,200, is the 100-day EMA close to $4,000. Ethereum would be at risk of a more severe retracement toward $3,600 if there was a decline there, confirming that the rally’s structure has been officially broken.

A consistent drop in volume has also supported the notion that market players are retreating. Sideways price action frequently resolves to the downside in the absence of significant inflows. The $4,200 key zone is still important for traders to keep an eye on. The bullish story may be saved if ETH maintains this level and breaks above the $4,500 resistance with strong volume.

Solana rally ends?

A lower high is beginning to form on the chart, which is a clear warning sign that Solana is getting tired. Following months of steady gains and higher highs since July, this development may signal the start of a more significant trend reversal, which could put an end to the asset’s current bullish cycle.

SOL recently reached a peak of about $210, but it was unable to surpass its August high of about $225. As an alternative, price action rolled over, creating a lower high, which is a classic indication of waning bullish momentum. Every high should surpass the one before it in a healthy uptrend, but this pattern break indicates that buying pressure isn’t strong enough to push Solana higher at this point.

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Declining trading volume combined with the daily structure makes it even more worrisome. Enthusiasm has waned, suggesting that market participants are reluctant to keep joining the rally even though the price is still above the psychological $200 threshold. A loss of momentum is reflected in the Relative Strength Index’s (RSI) flattening.

A confirmed trend reversal could occur from the lower high if Solana is unable to recover the $225 level in the near future. If $196, a crucial short-term support, were broken, further declines toward $185 and the 100-day EMA at $176 would be possible. A stronger move might even put the 200-day EMA close to $170 to the test, which would seriously undermine the long-term bullish argument.

The upward trend is currently on life support. A significant push above $210-$215 is necessary for bulls to regain confidence. If not, Solana’s lower high might signal the beginning of a longer-lasting bearish phase that could change market sentiment in the upcoming months.

Across Bitcoin, Ethereum and Solana, price action is tightening around levels that could determine the direction of the market in the next few weeks. A confirmed breakout would restore confidence in the uptrend, while failure to hold support zones risks shifting sentiment decisively bearish.

News Background

• Dogecoin fell 5% in the 24-hour period from Aug. 28 at 09:00 to Aug. 29 at 08:00, tracking broader risk-asset weakness.
• Between Aug. 24–25, an unknown whale shifted 900 million DOGE (~$200 million) to Binance wallets, fueling concerns of distribution and triggering market volatility.
• Open interest in DOGE futures slipped 8% after the inflows, reflecting lighter speculative positioning.
• On-chain data shows whales continue to build exposure, with 680 million DOGE accumulated in August, signaling institutional demand despite retail selling.
• Dogecoin’s network fundamentals remain firm, with hashrate climbing above 2.9 petahashes per second, underscoring mining security at record levels.

Price Action Summary

• DOGE dropped from $0.22 to $0.21 in the 24-hour trading window, a 5% decline across a $0.011 (≈3%) range between $0.23 and $0.21.
• The sharpest move occurred at 07:24–08:23 GMT on Aug. 29, when DOGE fell 0.57% from $0.22 to $0.21 on a 27.36 million volume spike at 08:20.
• Mid-session flows of 626.3 million tokens coincided with the $0.22 breakdown, cementing $0.21 as immediate support.
• Despite pressure, the token consolidated near $0.21 into session close, suggesting stabilization after heavy liquidation.

Technical Analysis

• Support: $0.21 holds as the primary floor; breach risks extension to $0.20.
• Resistance: $0.23 remains the short-term ceiling after repeated rejections.
• Momentum: RSI hovers near mid-40s, reflecting neutral-to-bearish bias.
• MACD: Bearish divergence persists, with no confirmed crossover yet.
• Patterns: Tight $0.21–$0.23 consolidation suggests compression phase; direction will hinge on resolution of whale flows.
• Volume: Elevated 626.3 million during the $0.22 breakdown signals continued institutional distribution.

What Traders Are Watching

• Whether $0.21 support can hold under ongoing whale selling.
• Breakout above $0.23 could open path toward $0.25–$0.30.
• Signs of renewed institutional accumulation as whales move supply onto exchanges.
• Futures open interest trends after the 8% drop, a key signal for leveraged demand.

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The Engulfing Candle is one of the simplest and possibly most underrated chart patterns in trading.

In this tutorial, I’ll show you how to identify the pattern, what it tells us as traders and I’ll give you some trading strategies that use this pattern.

Many people over-complicate this pattern, but it’s very simple.

There are basically 2 types of Engulfing Candles.

Here’s how to identify them. 

Bullish Engulfing Candle

A Bullish Engulfing candlestick pattern signals a potential reversal from a downtrend to an uptrend.

Here’s what to look for:

• 2-candle formation
• First candle is smaller than the second candle and the close is lower than the open
• Second candle has the largest candle body that has been seen in awhile and the close is higher than the open
• The high of the second candle is higher than the high of the first candle
• The low of the second candle is lower than the low of the first candle
• The second candle closes near the high of its range
• This pattern has to print on a support or resistance level

Examples

Here is an example of a Bullish Engulfing pattern on a Bitcoin chart. The blue arrow shows the Engulfing Candle. 

Notice how this was a dramatic turning point on the chart.

This obviously won’t happen all the time, but it does happen frequently enough that you should pay attention.

Here’s a second example on the USDCHF Forex pair.

This one rallied hard after the pattern printed on a previous support level.

So those are just a couple of examples of when a Bullish Engulfing Candle can signal an upward move in a market.

Now let’s take a look at the opposite of this pattern.

Bearish Engulfing Candle

A Bearish Engulfing candlestick pattern signals a potential reversal from a downtrend to an uptrend.

Here’s what to look for:

• 2-candle formation
• First candle is smaller than the second candle and the close is higher than the open
• Second candle has the largest candle body that has been seen in awhile and the close is lower than the open
• The high of the second candle is higher than the high of the first candle
• The low of the second candle is lower than the low of the first candle
• The second candle closes near the low of its range
• This pattern has to print on a support or resistance level

Examples

This example on the AUDNZD chart shows how fast price can move after a Bearish Engulfing candle pattern.

Notice how it prints on a previous level of resistance.

Now here’s an example on the NZDCAD chart.

Again there was a sharp move after the engulfing candle prints on the resistance zone.

Take any chart and start looking for this pattern.

You’ll notice that it happens more often than you might expect.

But don’t stop there.

Be sure to test this pattern out before risking real money.

My Favorite Engulfing Candle Resources

Here are resources for Engulfing Candle trading strategies that I’ve found super useful.

You can use them to help you create, test and trade Engulfing Candle trading strategies.

How to Prove Engulfing Candles Actually Work

At this point, you’re probably wondering: Does this actually work?

That’s a perfectly natural question and the only one that matters, quite frankly.

So here’s the truth about trading Engulfing Candles…

Just like with any other trading method, the success of the chart pattern will be determined by the specific trading plan.

There are many ways to enter and exit trades with this pattern, so you need to define these parameters in order to have a real trading strategy.

I’ll provide specific trading strategy plans in the next section. 

But here’s where most traders get tripped up…

Remember, there are only 2 types of trading strategies, discretionary and fully automated.

Most Engulfing Candle strategies are discretionary.

Therefore, the results can vary greatly between traders.

So it is essential that you backtest it for yourself to find out how good you are at identifying the setups in your trading strategy plan.

Practice can also improve your skills, so don’t be afraid to keep running through simulations until you feel you’ve maxed out your potential.

Now it might be possible to automate an Engulfing Candle strategy. If so, then the results are usually reproducible between traders.

Even then, you still have to create an automated strategy and test it on every market/timeframe you trade.

Always verify, never take another person’s word for it.

Remember, profitable trading strategies usually start out as very unprofitable ideas.

So start experimenting and don’t be afraid to test your own ideas.

You just might discover something amazing.

Trading Strategies That Use Engulfing Candles

Here are some trading strategies that you can review and start testing for yourself.

I’ve also included my own backtesting results so you can compare notes and make improvements on these strategies.

Final Thoughts

This super simple candlestick pattern could be the basis for your next grail trading strategy.

It is easy to identify and can be programmed into most trading platforms.

But it’s up to you to test it out and find out if it will work.

Remember, the most profitable strategy in the world is the one that fits YOU best.

Now get to work. 

Technical indicators of a possible price squeeze are being displayed by XRP as its chart patterns and market dynamics suggest a major move is imminent. The asset is still in a local uptrend, but underlying signals indicate that volatility may soon reappear. The convergence of moving averages is one of the major advancements.

Closer proximity of the 20, 50 and 100-day moving averages produces a compression effect that frequently precedes abrupt breakouts or breakdowns. A time of consolidation, when buyers and sellers are in relative balance, is reflected in this technical squeeze, but this equilibrium rarely endures. Consolidation phases are often characterized by a steady decline in volume. 

Reduced trading activity can be deceptive because it could conceal mounting pressure below the surface. Significant directional moves have frequently followed prolonged periods of low volume in XRP’s price action once volume has returned. A descending trendline formed from recent highs adds to the mix. Upside attempts have been capped thus far by this overhead resistance, drawing a clear line of battle between bulls and bears. 

With strong supporting volume, XRP must decisively break above this descending resistance in order for the uptrend to pick up steam. The local uptrend is unaffected by these technical limitations. It appears that buyers are still defending important support levels and setting up for a possible breakout as higher lows keep forming. 

XRP may swiftly retest the $3.40-$3.50 range if it is able to break through the descending trendline. Failure to break out though could result in a retest of lower supports at $3.06 or even $2.82.  

Dogecoin’s top

Dogecoin’s price movement is forming a possible local double top — one of the least desirable chart patterns for bulls. Following DOGE’s unsuccessful attempt to break through the $0.30 zone in late July and its subsequent attempt in early August, which ended at a lower high close to $0.27-$0.28, the pattern is beginning to take shape. If confirmed by a breakdown below important support, a double top can signal a reversal and frequently signals waning bullish momentum.

Given that several moving averages have converged below the current price, Dogecoin’s support is currently located between $0.21 and $0.22. The 50-day moving average crossing above the 200-day moving average is known as a golden cross, and DOGE is getting close to this bullish event. 

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Nevertheless, a strong follow-through is not supported by the current circumstances. The golden cross may not produce a long-term upward trend because price momentum is slowing, and there has not been a breakout to new highs. Additionally, volume data is not something you would desire right now.  

If selling pressure rises, lower volume might facilitate the traction of downward price movements. There is no strong directional momentum or notable divergence that would suggest an impending breakout, as indicated by the Relative Strength Index (RSI) being flat in the neutral zone around 50-55. The double top pattern is still possible if Dogecoin does not make a strong recovery and move above $0.28. 

Risk factor for Ethereum

After weeks of steady growth, Ethereum recently broke through the $4,400 barrier, continuing its strong bullish run. But even with the price action we are seeing right now, there are warning signals flashing. The Relative Strength Index’s (RSI) bearish divergence is the most notable one.

The RSI has failed to follow the price, forming a lower high in place of the higher high that the price of ETH has printed relative to its previous local peak. Even as the price rises, this divergence frequently indicates that the rally’s momentum is waning. In the past, these trends have come before brief declines or consolidations, particularly following protracted rallies. 

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The recent upward legs of decreasing short-term trading volume adds to the bearish outlook. Even though there are sporadic high volume spikes on the chart, which is a great indication of market activity, the daily volume trend is generally declining. This might suggest that fewer traders are prepared to pursue the rally at the current levels, which would raise the possibility of corrections driven by volatility. 

Regarding volatility, the wide range of ETH’s price fluctuations indicates that the market is still experiencing intense emotional volatility. Risks are increased even though this may present chances for rapid gains, especially if the divergence materializes and leads to a more thorough retracement.

Though traders should stay vigilant, ETH is currently showing strong bullish momentum. The impact of the divergence could be confirmed and a pullback toward the $3,950-$4,000 range could be possible, if there is a break below the short-term supports that are currently in place, especially those in the $4,250-$4,300 range. On the other hand, if bulls are able to maintain volume and disprove the divergence, Ethereum may continue to rise to new heights.

SOL Charts Hint At Retrace To $140 As Bullish Pattern Forms

In an X post on August 1, Pillows outlines a Solana price prediction based on a forming cup-and-handle pattern on the monthly chart. In general trading, the cup-and-handle represents a classic bullish continuation pattern. As observed in the chart below, it begins with a tea cup formation where price first declines and then gradually recovers, forming a “U” or bowl-shaped curve.

After the cup, the price pulls back slightly, creating the “handle.” Pillows’ analysis indicates that Solana is currently at this stage of the bullish pattern following a previous price rally to $235 earlier in January 2025. Solana is now undergoing a long-term descending consolidation movement, which Pillows project will lead the altcoin to trade as low as $140-$150.

Presently, SOL trades around $159, indicating the altcoin may still undergo an additional estimated 11% price loss despite the registered heavy corrections in the past week. However, being a bullish continuation pattern, Solana’s successful return to $140-150 price range would also signal a potential price rally.

However, Pillows’ analysis also indicates that the altcoin must first break past the neckline price at $235 to validate such bullish intent. If this scenario plays out positively, the top market analyst predicts Solana to trade as high as $1,000, suggesting a potential 532.91% gain on present spot prices.

Despite recent price corrections, Ted Pillows strongly supports Solana’s bullish potential, noting the altcoin continues to record high levels of network activity, signalling a substantial level of market interest.

Solana Market Overview

At the time of writing, Solana trades at $159.34 after a 3.84% decline in the past day. Meanwhile, the asset’s daily trading volume is also down by 37.85% and valued at $4.98 billion. However, in line with Pillows’ prediction, Solana holds immense potential for future price appreciation, especially as a potential altseason approaches.

The bullish sentiment among SOL investors is also driven by substantial institutional interest in the altcoin among many others. NewsBTC has earlier reported that several asset managers, including Grayscale, VanEck, and Fidelity, have also revised their Solana Spot ETF applications with the SEC, indicating ongoing dialogue between both parties in view of a potential approval.

Double Bottom Formation Tips DOGE For 82% Rally

In an X post on July 18, Ali Martinez presented a bullish technical analysis of the DOGE daily chart, hinting that the altcoin holds significant potential for a sustained rally in the short term. Martinez’s post shows that DOGE price movement over the six months has carved a textbook double bottom pattern, i.e., a technical setup that typically signals a positive trend reversal.

The double bottom pattern is a classic bullish formation, featuring two roughly equal lows separated by a peak, i.e, the neckline in between.  In the chart above, this pattern is noticed with DOGE forming lows near $0.13–$0.15 in April and June, separated by a rally toward $0.25 in May, representing the pattern’s neckline.

Notably, the crypto market surge over the last month has pushed DOGE towards $0.24 again, thereby completing the W shape of the double bottom pattern.  However, to validate the bullish potential of this chart pattern, market bulls must hold a decisive breakout above $0.25 resistance, which will typically be interpreted as a strong buy signal, projecting further gains ahead.

This is a highly possible scenario as the steep recovery from the June lows shows increasing bullish momentum with buyers stepping in with higher volume, pushing price action upward in a nearly uninterrupted fashion. According to Ali Martinez, a successful clearance of the $0.25 neckline paves DOGE’s way for a rally to $0.42, hinting at a potential 82.3% gain on present market prices.

On the other hand, another consecutive rejection around $0.25 price region would dent the current bullish momentum and possibly initiate a return to support levels around the $0.13–$0.15 region.

Related Reading: Ethereum Road To $10,000: Replay Of May’s Playbook Predicts Another Breakout

DOGE Price Overview

At the time of writing, DOGE trades at $0.25 following a 7.84% increase in the past 24 hours. Meanwhile, the asset’s daily trading volume is up by 108.5% suggesting suggesting a surge in market participation and growing bullish momentum, as traders continuously position themselves for a prolonged uptrend.

With a market cap of $34.95 billion, DOGE retains its position as the ninth-largest cryptocurrency and largest memecoin in the world.

Dogecoin Eyes Parabolic Rally With Megaphone Pattern

In a TradingView post, TradingShot predicted that Dogecoin could rally to as high as $1.25. He noted that the meme coin has been trading in a bullish Megaphone pattern within a channel up. The analyst added that the recent rebound on June 16 on the weekly MA200 is a higher low at the bottom of both patterns. 

With the 1-week Relative Strength Index (RSI) also rebounding on its long-term support zone, TradingShot declared that Dogecoin is most likely at the start of a new bullish leg. He noted that this could be the final rally that will shape this cycle’s top. Meanwhile, the analyst claimed that DOGE is targeting $1.25 because the previous two bullish legs peaked on the 3.618 Fibonacci extension of the last decline. 

He told market participants that they can settle for $0.8 if they wish to pursue a target within the Channel up. A rally to both $0.8 and $1.25 would mark new all-time highs (ATHs) for Dogecoin, whose current ATH is at $0.73. His accompanying chart showed that DOGE could reach these targets in the first half of next year. 

Dogecoin is expected to maintain a steady climb from now till then as it reaches those targets. The meme coin has already begun another uptrend following Bitcoin’s rally to a new ATH. DOGE has again reclaimed the $ 0.20 psychological price level and could potentially reach its last local high at around $0.26. 

DOGE Against Its Bitcoin Pair

In an X post, crypto analyst Kevin Capital stated that the DOGE/BTC chart is sitting in a historical zone of support with the monthly time frame indicators fully reset. The analyst indicated that this was possibly the best setup for Dogecoin, one that could spark a massive run for the meme coin. 

Meanwhile, crypto analyst Trader Tardigrade stated that the Dogecoin-to-Bitcoin chart might show a God candle this month. This God candle could spark a DOGE season, when the meme coin is expected to outperform the flagship crypto. The analyst’s accompanying chart showed that DOGE could rally to as high as $9 during this period. Meanwhile, he highlighted the $0.2 support level as being crucial for this lift-off for the meme coin. 

At the time of writing, the Dogecoin price is trading at around $0.2, up almost 2% in the last 24 hours, according to data from CoinMarketCap.

Key points:

Bitcoin (BTC) surged to a new all-time high on Thursday, and the bullish sentiment has rubbed off on select altcoins. One such altcoin is Sui (SUI), which rallied 11.3% to $3.41.

Could SUI continue its upward move? Let’s analyze the charts to find out.

SUI price prediction

SUI turned up sharply from the 20-day exponential moving average (EMA) ($2.92) on Wednesday and broke above the 50-day simple moving average (SMA) ($3.08) on Thursday.

The 20-day EMA is trying to turn up, and the relative strength index (RSI) has jumped into positive territory, indicating that the bulls are back in the game. If buyers maintain the price above the 50-day SMA, the SUI/USDT pair could climb to $3.55.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it signals that the bears continue to sell on rallies. The pair could then descend to $2.64 and later to $2.29.

Related: Bit Mining surges 350% on pivot to Solana, plans $300M token treasury

The pair completed a bullish inverse head-and-shoulders pattern on a close above the $3.08 level. Although the upsloping moving averages signal an advantage to buyers, the overbought level on the RSI suggests a pullback may be around the corner. The neckline is the crucial support to watch out for on the downside. If the price rebounds off the neckline, the pair could rally to $3.50 and subsequently to the pattern target of $3.89.

This optimistic view will be negated in the near term if the price turns down and plunges below the moving averages. That may sink the pair to $2.80 and then to $2.60.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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