Dogecoin Holds Above $0.168 Level Amid Bullish RSI Divergence

Dogecoin (DOGE) has been maintaining its price above the critical $0.168 level, a key support zone that has been closely monitored by traders and analysts. This stability is reinforced by a hidden bullish divergence in the Relative Strength Index (RSI), which suggests a potential shift in momentum favoring DOGE. The RSI, a widely used technical indicator, measures the speed and change of price movements. A hidden bullish divergence occurs when the price of an asset makes a lower low, but the RSI makes a higher low, indicating that selling pressure is weakening and a potential reversal may be imminent.

The fact that DOGE is holding above $0.168 is significant because it has historically acted as a strong support level. Breaking below this level could have triggered further selling pressure and potentially led to a more substantial decline. However, the current price action suggests that buyers are stepping in to defend this level, which is a bullish sign.

The hidden bullish divergence in the RSI adds another layer of optimism. This technical pattern often precedes a price reversal, as it indicates that the downward momentum is losing steam. Traders familiar with this pattern may interpret it as a signal to enter long positions, anticipating a potential rally.

According to analysis prepared by Trader Tardigrade, Dogecoin consistently rebounds after entering the same support range. The RSI trendline continues to hold and keeps the price from falling below $0.168. The RSI remains above 50, offering a neutral reading with upside potential. Price is currently trading near $0.177 and remains above the Fair Value Gap and 4-hour Order Block. This overlapping zone between $0.176 and $0.178 is viewed as strategic positioning.

Volume also supports the case for bullish continuation. Binance recorded an 18% increase in trading volume in 24 hours, while on-chain data showed a 150 million DOGE transfer. Whale Alert reported the value of this transaction exceeded $21 million, which may reflect ongoing accumulation.

DOGE remains inside a symmetrical triangle that has formed since early February. The current price rests near the triangle’s lower boundary. Analyst Ali Martinez stated, “Holding above $0.168 is crucial. A break below this level could trigger sharp declines.” Meanwhile, Andrew Griffiths identified an ascending flag pattern on the DOGE chart. This technical setup signals the possibility of a proportional upward movement once the breakout occurs.

As of June 16, Dogecoin is trading within a narrow band between $0.175 and $0.18. Traders are watching for a breakout, especially with RSI forming higher lows. The next targets may include $0.21 and $0.24, based on recent analyst projections.

The stability above $0.168 and the hidden bullish divergence in the RSI are both positive indicators for DOGE. However, it is important to note that technical analysis is just one piece of the puzzle. Market sentiment, news events, and broader economic factors can all influence the price of DOGE. Therefore, while these technical signals are encouraging, they should be considered in the context of the overall market environment.

In conclusion, DOGE's ability to hold above the $0.168 level, combined with the hidden bullish divergence in the RSI, suggests that the asset may be poised for a potential rally. Traders and investors will be closely monitoring these developments, as any breakout above this level could signal the start of a new uptrend. However, it is crucial to remain vigilant and consider all relevant factors before making any trading decisions.