- Dogecoin’s RSI divergence hints at weakening bearish momentum and a possible price recovery soon.
- DOGE must break above $0.30 to confirm its potential for a bullish reversal.
- The RSI rebound suggests buying interest could drive DOGE higher in the coming weeks.
Dogecoin’s (DOGE) price action is signaling potential bullish momentum as per a chart shared by analyst Charting Guy. The daily chart highlights a bullish divergence forming, with DOGE priced at $0.2638, marking a minor decline of 0.19% over the last 24 hours. Despite this, the presence of the divergence coupled with RSI trends suggests a possible reversal in the near term.
Recent Price Action and Downtrend
The price trend shows that DOGE has been in a downtrend since hitting a local high of $0.4000 in late 2024. Recently, DOGE slipped below $0.3000 and now hovers around $0.2638. However, the chart reveals an interesting divergence: while the price continues to dip, the RSI indicator is gradually climbing. This divergence is typically seen as an early signal of weakening bearish momentum and an impending bullish turn.
Further analysis of the RSI shows it rebounding from the oversold territory near the 30-level, now trending upward toward the midline. A yellow moving average line accompanying the RSI confirms this upward movement, adding weight to the potential reversal narrative. Historically, such setups have triggered notable price recoveries, often fueling excitement among DOGE enthusiasts.
What Lies Ahead for DOGE?
Charting Guy’s observation of the daily bullish divergence is accompanied by cautious optimism. While the divergence indicates a potential bottom, confirmation will likely come if DOGE breaks back above the $0.3000 psychological barrier. Traders are advised to monitor the RSI closely alongside volume trends, as increased buying pressure will be a critical indicator of sustained recovery.
Dogecoin, often known for its humorous origins, may have the last laugh if this technical pattern plays out as expected. With the right conditions, DOGE could retest higher resistance levels in the coming weeks, much to the delight of its loyal community. As Charting Guy aptly pointed out, “obviously needs to confirm,” but the current setup offers a glimmer of hope for a rebound.
