Dogecoin Shows Hidden Bullish Divergence Near $0.17

Dogecoin is currently trading near the $0.17 mark, showing signs of potential strength building as the Relative Strength Index (RSI) on its daily chart moves higher. The RSI has been rising from oversold territory while the price remains nearly flat, forming a hidden bullish divergence. This pattern often precedes a price recovery, especially when visible on a longer timeframe such as the daily chart.

Technical analysts have highlighted this divergence, noting that the RSI lows are rising while the price forms a flat or lower low. This mismatch suggests accumulation or hidden strength building at current levels. The RSI indicator, calculated over 14 days, is now near 35.72 and showing an upward curve, reflecting increasing buying interest despite muted price action. This divergence between price lows and RSI lows is often seen as a reliable early trend reversal pattern.

Dogecoin’s current structure aligns with the hidden bullish divergence category, which typically occurs in uptrending markets and signals continuation. Traders and market watchers are closely analyzing this divergence to gauge a potential shift in trend direction. If the price rises above $0.18 with volume and the RSI crosses 50, the reversal from the current zone may confirm.

Historically, previous RSI divergences have preceded notable upward movements. For instance, a bullish divergence formed near $0.06 in August 2024 was followed by a multi-month rally. While no pattern guarantees results, many traders view RSI setups as useful signals when aligned with strong price support. The current price of Dogecoin stands at approximately $0.1705, having rebounded from a recent low of $0.164. The RSI at 33.29 suggests that the cryptocurrency is nearing oversold territory, implying that a price correction or a bullish reversal is imminent.

The daily chart of Dogecoin shows strong signals of consolidation right below a significant resistance level, currently trading between $0.17 and $0.20. If the $0.17 support level holds, Dogecoin could potentially break through the resistance and continue its upward trajectory. However, if the support fails, the cryptocurrency could plummet to $0.15, as indicated by the RSI sitting near 34.97 and moving towards oversold territory.

In summary, Dogecoin's current trading near $0.17, coupled with the hidden RSI signal and other technical indicators, suggests a potential bullish reversal. While the cryptocurrency has faced a decline in trading volume and bearish signals from the MACD, the RSI divergence and exchange outflows indicate that a rally could be on the horizon. Investors and traders should closely monitor the $0.17 support level and the RSI for further confirmation of a bullish reversal.