Dogecoin’s price action on the daily time frame is begins to show early symptoms that the downward trend may leisurely down. He was the king of meme coins trading with down months price movement, but technical analysis shows that it is currently printing a technical setup that could become a turning point.
The developing double bottom structure coupled with the clear RSI divergence shifts the focus back to the possibility of a reversal even as Dogecoin price price action is compressed nearby long-term support around USD 0.12.
The RSI divergence shows weakening bearish dynamics
The the most noticeable development comes from the Relative Strength Index on the daily chart. Technical analysis shows that while Dogecoin price is currently back to the same support area around the $0.12 zone, the RSI indicator has not made a recent low. Instead, it formed a higher low, which created a bullish divergence between momentum and price.
This discrepancy shows that sellers are no longer lowering the price with the same force previously seen in a downtrend. This development is noteworthy as similar RSI behavior has often preceded increases in support for Dogecoin coupled with forceful structural support.
Moreover, Dogecoin’s price action appears to be forming a double bottom along the lower boundary of the descending channel, as shown in the chart below. This type of construction is indicating exhaustion sales page behind the scenes. The longer Dogecoin’s price stays above this base, the stronger the argument becomes that accumulation is taking place.
The reversal outlook is based on whether Dogecoin can recover and sustain above $0.16. A confirmed move above this value would confirm an RSI divergence and a double bottom, although the real rally will only begin once Dogecoin is able to break above $0.31.
Fractal indicates upcoming expansion
Technical analysis Dogecoin’s higher time frame chart shows a compelling historical parallel with memecoin rising well above $0.31. Dogecoin in particular is printing a fractal on the weekly candlestick chart that looks like the one that preceded the 331% breakout in delayed 2024.
In this earlier case, Dogecoin spent months falling, formed a rounded underlying structure, and then, after a momentum shift, took off in a near-vertical move. The current structure shows a similar rounded bounce attempt followed by a controlled pullback to 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 it sits at the base what the next vertical leg up might be if the fractal continues to run as expected. Although it exists still need confirmation, these analyzes indicate that Dogecoin may be emerging from the corrective phase and positioning itself for a much larger forward move.
Featured image from Peakpx, chart from Tradingview.com
