Dogecoin (DOGE) price fell to a local low of $0.1293 on Monday morning, but the Relative Strength Index (RSI) on the four-hour chart showed bullish divergence, which signaled that bearish pressure might be losing its grip.

Cantonese Cat noted the RSI pattern on X (formerly Twitter), suggesting that a shift in momentum was brewing despite the lack of trading volume.

Shortly after, DOGE bounced off the $0.1293 support level as buyers stepped in to halt the downtrend.

While the recovery was modest so far, the technical setup could inject some optimism into the market, which has recently favored utility-driven tokens over meme-based assets.

Dogecoin’s price action in recent times also comes amid a fading narrative.

DOGE’s massive rally in 2021 was largely driven by community hype, celebrity endorsements, and internet culture. However, in 2025, investors are more focused on projects with real-world applications, Decentralized Finance (DeFi) innovations, and next-gen utility.

Still, Dogecoin’s community isn’t completely out of the picture.

Though online chatter about the meme coin has largely simmered down, the resilience shown in recent price action suggests that technical traders are watching DOGE closely, particularly as it approaches potential resistance zones.

Should the RSI-led bounce attract more momentum—and ideally, volume—it could lead to a short-term rally that surprises those expecting further weakness.

The broader crypto market trends will also be a key factor. If market sentiment turns bullish across altcoins, meme tokens like DOGE could ride the wave once again.

In the meantime, all eyes are on whether Dogecoin can sustain this bullish divergence or if it will stall.