Dogecoin’s RSI Signals Potential 22% Rebound as It Approaches Key Support

Dogecoin (DOGE) is currently facing a crucial juncture as it nears a significant ascending support trendline ranging from $0.230 to $0.240. This trendline has a history of serving as a strong support level during previous market dips, having successfully held on three separate occasions. This track record solidifies its reputation as a pivotal price floor in the market [1].

Simultaneously, the Relative Strength Index (RSI) is displaying hidden bullish divergence, indicating a divergence between the indicator forming higher lows and the asset’s price experiencing a slight retreat. This disparity suggests that buyers are gaining internal strength, even as short-term sellers are testing the support levels [2]. Furthermore, the RSI’s current range, which stands between 30 and 40, is approaching oversold territory. Its upward trajectory signals a potential shift in momentum [3].

Trader Tardigrade has drawn attention to the 4-hour chart, emphasizing the psychological significance of the trendline for buyers. Notably, an upward arrow on the chart indicates a probable price rebound if the trendline holds firm. A successful defense of this level could trigger an upward movement towards the $0.270–$0.290 price range, which aligns with historical peaks and could serve as a short-term target for bullish investors [1]. However, this forecast relies on confirmation signals such as positive candlestick patterns and an RSI breakout above the descending line [3].

Despite the optimistic outlook, there are potential risks ahead. A breach below the support zone between $0.2250 and $0.2258 would invalidate the bullish framework, potentially leading the price to drop towards $0.210 or even revisit the June low of $0.1880 [1]. On a broader front, technical indicators remain mixed, with the Altcoin Season Index declining from 59 to 45, reflecting a sense of caution prevailing in the broader market [2].

In addition, DOGE’s 50-day simple moving average (SMA) at $0.2439 is currently being closely monitored. A sustained closing above this level could signal a shift in short-term sentiment to bullish [4]. The convergence of the 0.618 Fibonacci retracement level and a long-term trendline since July 2025 has provided a significant support base for DOGE’s price action. An encouraging sign is the bullish hammer candle at $0.2258, indicating strong support from buyers defending this zone [1].

Looking ahead, analysts emphasize that while the setup with RSI and trendlines favors a bullish scenario, volume confirmation is crucial for a sustainable rally. Proposed trade setups include a stop-loss below $0.2250 and a risk-reward ratio of 2:1 for short-term traders, underlining the significance of volume surges in validating price breakouts [1]. Mitrade’s analysis highlights a 22% decline from DOGE’s recent highs, underscoring the fragile nature of the rally despite the RSI issuing a reversal signal [4].

The broader slowdown in the altcoin market context provides further insight into DOGE’s technical trajectory. Although speculative demand seems to be diminishing, the cryptocurrency’s chart pattern, characterized by higher lows and consistent support level retests, indicates that buyers are still in control [4]. Whether DOGE retests the $0.26 level hinges on sustained volume and the commitment of bullish participants, with key support levels playing a crucial role in maintaining the upward bias [1].

Traders are advised to closely monitor the 50-day SMA and the $0.2490 resistance level. A breach below $0.2258 could reignite bearish momentum, while a projected reversal might attract renewed speculative interest. The next few days will be pivotal in determining whether DOGE can consolidate above key moving averages or face a renewed wave of selling pressure in the market.