Fri, 20 Jun 2025 02:00:43 +0000

Dogecoin, the popular meme coin, is showing potential signs of a bottoming pattern, according to a recent technical analysis. The daily chart, highlighted by pseudonymous trader Cantonese Cat on X, suggests that Dogecoin may be poised for a rebound after a prolonged downtrend. As of 02:26 UTC, Dogecoin was trading at $0.16979, marginally lower for the session. The 14-period relative strength index (RSI) stood at 35.72, slightly above the oversold threshold, sparking hope amongst investors.

Dogecoin Prints Bullish Divergence

A striking feature of the analysis is the presence of regular bullish divergences. This pattern, where price makes lower lows while the RSI forms higher lows, suggests that buying pressure is quietly building up even as the price declines. Cantonese Cat identified three inflection points: August 2024, March-April 2025, and mid-June 2025. Historically, such signals have preceded significant rallies for Dogecoin.

• The August 2024 signal led to a nearly 300% surge, pushing Dogecoin $0.05 to almost $0.23.
• The March divergence triggered a 100% recovery, reaching the $0.26 resistance zone.

Adding weight to this signal is the current structural context. Dogecoin has been retracing within a descending channel since peaking above $0.48 in November. It is now retesting a former down-sloping resistance line near $0.163, which could act as crucial support. The multi-year ascending trendline around $0.142 provides further support, though a breach of these levels could lead to a decline towards $0.139.

Future Outlook

The immediate challenge for Dogecoin bulls lies in clearing the $0.172 - $0.1826 range, which includes the channel midline and the 0.786 Fibonacci retracement level. Overcoming this resistance could pave the way for further gains towards $0.247 (0.618 Fibonacci level) and potentially the 100-day EMA. However, a decisive break below the multi-year trendline could invalidate the bullish divergence and trigger a sell-off towards $0.13 - $0.135, with a possible capitulation target around $0.10.

• Potential for rally if key resistance levels are broken.
• Failure to hold support could lead to further declines.
• Watch for volume changes as price approaches support levels.

In conclusion, Dogecoin is showing intriguing signs of a potential bottom. The bullish divergence, combined with key support levels, offers a glimmer of hope for investors. However, caution is warranted as a break below critical support could negate the bullish setup. Keep a close eye on Dogecoin's price action to determine whether this meme coin can indeed stage a recovery.