Dogecoin Shows Bullish Divergence Signal At 35.72 RSI

Dogecoin, the popular meme-coin, has shown signs of life with a bottoming signal, according to a chart analysis published by the pseudonymous trader Cantonese Cat. The daily chart of Dogecoin, captured at 02:26 UTC, indicated that the cryptocurrency was trading at $0.16979, slightly lower on the session. The 14-period relative-strength index (RSI) was at 35.72, just above the classical oversold territory.

The most notable feature of the chart was a sequence of regular bullish divergences. This pattern occurs when the price sets progressively lower lows while the RSI traces higher troughs. Cantonese Cat highlighted three such inflection points: the first in August 2024, the second in March and April 2025, and the latest in mid-June. Historically, the first signal preceded a significant rally that saw Dogecoin surge from the high-$0.05 area to an intraday peak just shy of $0.23, a nearly 300% advance. The March divergence led to a 100% rebound back to the $0.26 zone, a former support now acting as overhead resistance.

The current structural context supports the bullish divergence signal. Since topping out in November above $0.48, Dogecoin has been retracing inside a descending channel. Within this broader channel, Dogecoin is now retesting a former down-sloping resistance line that provided stiff resistance throughout March and April this year. This line, now acting as crucial support, is near $0.163. Just below this back-test sits the multi-year ascending trendline, which is close to $0.142. Should both of these levels falter, the true lower boundary of the descending channel waits a fraction lower around $0.139, giving bulls only a narrow buffer of roughly three cents to defend.

From a Fibonacci perspective, the 0.786 retracement at $0.1826, coupled with the 20- and 50-day exponential moving averages as well as the channel midline at $0.172, forms the first ceiling that must be cleared to shift near-term momentum. A breakout above that area would expose the 0.618 level at $0.247 and the 100-day EMA. Successive hurdles then stack at the 0.5 retracement ($0.292), the 0.382 ($0.338), and the 0.236 ($0.3939), each corresponding to prior congestion zones during the winter advance.

Volume has begun to taper as price approaches support, while the 14-period RSI remains anchored in the mid-30s—still technically oversold, but showing a slight uptick that mirrors the bullish divergence Cantonese Cat flagged. For bears, a decisive daily close beneath the multi-year trendline would invalidate that divergence setup and likely drive Dogecoin toward the horizontal liquidity band between $0.135 and $0.13, with a final capitulation target around $0.10—site of last October’s base.