Dogecoin Approaches Key Support Trendline with RSI Showing Bullish Signal

Dogecoin is currently retesting a significant ascending support trendline, a level that has historically triggered bullish rebounds during previous market dips.

A hidden bullish divergence on the Relative Strength Index (RSI) indicates increasing internal strength, even as the DOGE price experiences a slight short-term pullback.

This setup suggests a potential price movement towards the $0.270–$0.290 range if bulls successfully defend the trendline and exhibit strong confirmation signals.

Dogecoin (DOGE) is nearing a crucial technical support level between $0.230 and $0.240. Historically, this level has prompted strong rebounds, with price movements consistently respecting the ascending trendline. RSI momentum also hints at a possible bullish reversal as internal strength builds. Collectively, these indicators point towards a potential setup for Dogecoin's next upward surge.

Analyst Highlights a Bullish Technical Setup

Trader Tardigrade recently highlighted this compelling pattern on the DOGE 4-hour chart. The ascending green trendline has served as a key support, remaining robust during prior pullbacks.

Price has already rebounded from this trendline three times, establishing a bullish continuation structure. The current retest reinforces the trendline's validity, suggesting that buyers might be preparing to defend this zone once again.

Moreover, the chart illustrates a red upward arrow at the support level, projecting a potential rebound if the pattern holds.

RSI Divergence Adds to Bullish Case

In addition to price support, the Relative Strength Index (RSI) provides a distinct bullish signal. While the DOGE price maintains higher lows, the RSI has formed lower lows.

This hidden bullish divergence signifies growing internal momentum, implying that recent price weakness may not accurately reflect actual selling pressure.

Furthermore, the RSI is hovering between 30 and 40, approaching oversold territory. The indicator is also beginning to curl upward, suggesting that momentum may soon shift, potentially supporting a bounce from the current level.

What Comes Next for DOGE?

Should bulls maintain this trendline, Dogecoin could potentially recover to the $0.270 to $0.290 resistance zone. This zone has acted as past highs and could be tested in the near future.

However, a breakdown below the trendline would alter the outlook. In such a scenario, the price might decline towards $0.210, disrupting the bullish structure.

Traders should closely monitor for bullish candlestick formations and an RSI breakout above the descending line, as these signs could confirm a renewed upward impulse.