Dogecoin Approaches Triangle Apex; Bullish RSI Divergence
Dogecoin (DOGE) is trading around $0.168 within a long-standing symmetrical triangle between $0.16 and $0.22, retesting former resistance-turned-support near $0.163 inside a descending channel from November’s $0.48 peak. The daily chart shows a bullish divergence on the 14-period RSI as price forms lower lows while momentum forms higher troughs, similar to signals in August 2024 and spring 2025 that preceded 100–300% rallies. Key support levels sit at the multi-year ascending trendline near $0.142 and the channel base at $0.139. A daily close above $0.22—or clearing the 0.786 Fibonacci retracement at $0.1826 and the 20/50-day EMA confluence near $0.172—could trigger a breakout with up to 60% gains toward $0.247 and $0.292. Conversely, a drop below $0.16—and especially a close under $0.142—threatens a fall toward $0.135–0.13, invalidating the divergence. Volume is tapering and RSI is rising from oversold, underscoring the likelihood of an imminent decisive move.
Bullish
The co-occurrence of a bullish RSI divergence and the approach to a triangle apex signals heightened breakout potential for DOGE. Historically, similar momentum setups have triggered substantial rallies, supporting a bullish outlook in both the short and medium term. Key resistance and support levels frame clear entry and invalidation points, enhancing trade decision-making. As volume tapers and volatility contracts, a decisive move above resistance could drive up to 60% gains, while a breakdown would negate the bullish case.