Dogecoin is once again in the spotlight after a bullish divergence emerged on its weekly chart, reminiscent of past rallies. However, the price’s ongoing movement within a broad trading range
Dogecoin is once again in the spotlight after a bullish divergence emerged on its weekly chart, reminiscent of past rallies. However, the price’s ongoing movement within a broad trading range suggests the market has yet to decide on a clear direction. Analysts remain divided: some see the potential for a rebound from current levels while others warn the meme coin may revisit lower support zones if downside pressure persists.
According to analysis shared by Moe, Dogecoin’s weekly DOGE/USD chart reveals the price has formed lower lows even as the Relative Strength Index (RSI) prints higher lows. In technical terms, this setup is interpreted as a bullish divergence, usually signaling waning selling momentum and the possibility of an upcoming rally.
Glossary: The RSI is a momentum indicator used to gauge the speed and strength of price movements. When RSI shows higher lows while prices fall, analysts treat it as an early technical signal that the tide of selling could be weakening.
Moe’s chart highlights that a similar divergence appeared near Dogecoin’s 2022 market bottom, a period that preceded a notable recovery in price. Currently, the RSI is turning upward again while price remains rangebound above its key support, drawing parallels to that prior setup. Yet the market’s next move remains a point of debate due to Dogecoin’s persistent sideways action.
In Moe’s view, the weekly chart’s pattern—lower lows in price with higher lows in RSI—signals a loss of downward momentum for Dogecoin.
That said, analysts caution this signal alone is not enough to guarantee a rapid rally. A bullish scenario would require confirmation through price action, with Dogecoin needing to break through resistance zones to validate any upward momentum.
On the daily chart, Dogecoin continues to trade within an established range. Umair Orakzai notes that in the DOGE/USDT pair, neither a daily close above the range top nor below the range bottom has occurred for some time. This means market structure remains intact while investors wait for a decisive move.
The analysis points out that after briefly pushing above the upper boundary, price quickly retreated back into the range—a failed breakout that increases the chances of a return to the middle or even the lower end of the trading band if sellers regain control.
LevelPriceSignificanceRange midpoint$0.083Primary support to watch2023 POC$0.0816Lower support and high volume zoneVAL$0.0656Support in case of deeper pullbackUpside retest zone$0.0987Short term recovery thresholdMajor resistance$0.1120Strong barrier zoneThe analysis underscores $0.083 as the initial level to monitor. Should sellers keep the upper hand, DOGE could return to the 2023 Point of Control at $0.0816, its next key support. If weakness persists further, the Value Area Low at $0.0656 could become relevant as the next target below.
Orakzai emphasizes that Dogecoin’s range-bound structure remains intact, advising traders to avoid jumping to conclusions before seeing a strong close above or below the identified boundaries.
If Dogecoin can mount a recovery to the upside, the $0.0987 retest area would be the first threshold to watch for a potential short-term trend reversal. Only after successfully clearing this zone would the more formidable $0.1120 resistance come into play. For now, market players are closely observing whether the price trends toward the range midpoint and lower supports or picks up steam for a move to the upper band.
The post Dogecoin’s weekly price divergence sparks fresh debate! What does the $0.083 and $0.0816 support mean for the next move? appeared first on COINTURK NEWS.
