Dogecoin News Today: Dogecoin Nears Key Support as RSI Signals 22% Rebound Potential

Dogecoin (DOGE) is approaching a critical ascending support trendline between $0.230 and $0.240, a level that has historically acted as a magnet for bullish rebounds during prior market corrections. This trendline has successfully held three times in the past, reinforcing its credibility as a key price floor [1]. Concurrently, the Relative Strength Index (RSI) exhibits hidden bullish divergence, with the indicator forming higher lows despite the asset’s price showing a minor pullback. This divergence suggests growing internal strength among buyers, even as short-term sellers test the support [2]. The RSI’s current range (30–40) nears oversold territory, and its upward curvature hints at a potential reversal in momentum [3].

Trader Tardigrade highlighted the 4-hour chart pattern, emphasizing the trendline’s role as a psychological anchor for buyers. The analyst noted a red upward arrow on the chart, which projects a price rebound if the trendline holds [1]. A successful defense of this level could trigger a move toward $0.270–$0.290, a resistance zone that aligns with historical highs and could become a short-term target for bulls [2]. This projection hinges on confirmation signals such as bullish candlestick formations and an RSI breakout above the descending line [3].

However, the path forward is not without risks. A breakdown below the $0.2250–$0.2258 support zone would invalidate the bullish structure, potentially sending the price toward $0.210 or even the June low of $0.1880 [1]. Technical indicators remain mixed, with the Altcoin Season Index dropping to 45 from 59, reflecting broader market caution [2]. Meanwhile, DOGE’s 50-day simple moving average (SMA) at $0.2439 is under scrutiny; a sustained close above this level could flip the short-term bias to bullish [4].

The price action has also stabilized near a confluence of the 0.618 Fibonacci retracement level and a long-term trendline from July 2025, creating a strategic pivot for traders [1]. A bullish hammer candle at $0.2258 has reinforced this support, signaling conviction from buyers defending the zone [1]. If DOGE tests the $0.2490 (0.382 Fib) resistance, a break above this level would open the door to retesting the $0.2634 consolidation zone [2].

Analysts caution that while the RSI and trendline setup favor a bullish scenario, volume confirmation will be critical for any sustained rally. A proposed trade setup includes a stop-loss below $0.2250 and a 2:1 risk-reward ratio for short-term traders, underscoring the importance of volume spikes in validating breakouts [1]. The Mitrade analysis highlights a 22% decline from DOGE’s recent highs, emphasizing the fragility of the rally despite the RSI’s reversal signal [4].

The broader altcoin market’s slowdown adds context to DOGE’s technical trajectory. While speculative demand appears waning, the cryptocurrency’s chart structure—marked by higher lows and retests of support levels—suggests buyers retain control [4]. A retest of $0.26 will depend on sustained volume and conviction from bullish participants, but analysts stress that key support levels must hold to maintain the upward bias [1].

Traders are advised to monitor the 50-day SMA and $0.2490 resistance closely. A breakdown below $0.2258 could reignite bearish momentum, while a confirmed reversal may attract renewed speculative interest. The coming days will likely determine whether DOGE can consolidate above critical moving averages or face renewed selling pressure.

[1] FXLeaders. https://www.fxleaders.com/news/2025/07/26/dogecoin-price-prediction-can-doge-rebound-toward-0-26-after-key-bounce/

[2] BTCC. https://www.btcc.com/en-CA/square/coincentral/693227

[3] XT.com. https://www.xt.com/en/blog/community-news/2025-07-25T19:18:26.000Z

[4] Mitrade. https://www.mitrade.com/insights/news/live-news/article-3-988410-20250726