Dogecoin’s daily price action is beginning to show early signs that the downtrend may be losing momentum. The most notable development comes from the Relative Strength Index on the daily chart, where the RSI failed to make a new low even as price revisited the $0.12 support. Technical analysis shows that a higher low formed, creating a bullish divergence between momentum and price, and the price action appears to be forming a double bottom along the lower boundary of a descending channel. If Dogecoin can reclaim and hold above $0.16, the reversal scenario would be strengthened; a move above $0.31 would mark the real rally.
On the weekly chart, a fractal pattern resembles the setup that preceded a 331% breakout in late 2024. In that prior instance, Dogecoin spent months grinding lower, formed a rounded basing structure, and then launched into a near-vertical move once momentum flipped. The current price is around $0.122, near the base of the potential next leg higher, and additional confirmation is still needed.
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