Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Dogecoin’s price action on the daily timeframe is starting to show early signsthat the downtrend may be losing momentum. The king of meme coins has been trading with months of decliningprice movement, but technical analysis shows it is now printing a technical setup that might become a turning point.
A developing double-bottom structure combined with a clear RSI divergence is shifting attention back to the possibility of a reversal, even as Dogecoin’s price action is compressed nearlong-term support around $0.12. RSI Divergence Shows Weakening Bearish Momentum
The most notable developmentcomes from the Relative Strength Index on the daily chart. Technical analysis shows that while Dogecoin’s price is now revisiting the same support region around the $0.12 zone, the RSI failed to make a new low. Instead, it formed a higher low, which created a bullish divergence between momentum and price. Related Reading Dogecoin Price Just Confirmed A Reversal With The RSI Divergence 6 hours ago
This divergence shows that sellers are no longer pushing price lower with the same strength seen earlier in the downtrend. This development is notable because similar RSI behavior has often preceded relief rallies for Dogecoin when paired with strong structural support. Source: Chart from Dark on X
Furthermore, Dogecoin’s price action appears to be creating a double bottom along the lower boundary of a descending channel, as shown in the chart below. This type of structure is pointing to exhaustion onthe sell side behind the scenes. The longer Dogecoin’s price holds above this base, the stronger the argument becomes that accumulation is taking place.
The reversal outlook is based on whether Dogecoin can reclaim and hold above $0.16. A confirmed move above it would validate the RSI divergence and double bottom, although it won’t be until Dogecoin is able to break above $0.31 that the real rally will begin. Fractal Points To An Incoming Expansion
Technical analysis ofDogecoin’s higher-timeframe chart introduces a compelling historical parallel that sees the memecoin pushing well above $0.31. Particularly, Dogecoin is printing a fractal on the weekly candlestick chart that looks like one that preceded a 331% breakout in late 2024. Related Reading Dogecoin RSI Just Entered Historical Oversold Levels Again, Will It Repeat 2021? 1 week ago
In that prior instance, Dogecoin spent months grinding lower, formed a rounded basing structure, and then launched into a near-vertical move once momentum flipped. The current structure shows a similar rounded recovery attempt followed by a controlled pullback into long-term support.
At the time of writing, Dogecoin is trading at $0.1221. As shown in the chart below, the current price action is now sitting at the base ofwhat could be the next vertical leg higher if the fractal continues to play out as expected. Although there is still a need for confirmation,these analyses indicate that Dogecoin may be transitioning out of its corrective phase and positioning for a much larger move ahead. DOGE trading at $0.12 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Peakpx, chart from Tradingview.com