- Dogecoin is retesting a strong ascending support trendline that has triggered multiple bullish rebounds in previous market dips.
- Hidden bullish divergence on the RSI indicates rising internal strength even as the DOGE price shows a slight short-term pullback.
- The current setup suggests a potential price move toward $0.270–$0.290 if bulls defend the trendline with strong confirmation signals.
Dogecoin (DOGE) is approaching a very critical technical support level between $0.230 and $0.240This level has in the past shown strong rebounds, with price movements respecting a rising trendline multiple times. RSI momentum also hints at a potential bullish reversal as internal strength builds. Together, these indicators signal a possible setup for Dogecoin’s next upward leg.
Analyst Highlights a Bullish Technical Setup
Trader Tardigrade recently spotlighted this compelling pattern on the DOGE 4-hour chart. The ascending green trendline has been a key support, holding firm during prior pullbacks.
Price has already bounced off this trendline three times, creating a bullish continuation structure. The current retest strengthens the line’s credibility and signals that buyers may be preparing to defend the zone again.
Moreover, the chart features a red upward arrow at the support, projecting a potential rebound if the pattern holds.
RSI Divergence Adds to Bullish Case
Besides price support, the Relative Strength Index also provides a clear bullish signal. While DOGE price maintains higher lows, the RSI has formed lower lows.
This hidden bullish divergence points to growing internal momentum. It suggests that recent price weakness may not reflect actual selling pressure.
Additionally, RSI hovers between 30 and 40, nearing the oversold region. The indicator is also starting to curl upward. Hence, momentum may soon flip, supporting a possible bounce from the current level.
What Comes Next for DOGE?
If bulls keep up this trendline, Dogecoin may recover to the $0.270 to $0.290 resistance zone. This zone has been used as past highs and could be tested in the near term.
However, a breakdown below the trendline would shift the outlook. In that case, price may slide toward $0.210, breaking the bullish structure.
Traders should watch closely for bullish candlestick formations and an RSI breakout above the descending line. These signs could confirm a fresh upward impulse.
