Dogecoin Shows Signs of Life with Bottom Signals

The daily chart of Dogecoin, published by the anonymous trader Cantonese Cat on Wednesday X, suggests that this meme coin may be stirring after a prolonged bearish trend. At 02:26 UTC, a snapshot from TradingView recorded DOGE changing hands at $0.16979, slightly lower during the session, while the 14-period relative strength index stood at 35.72, just north of the classic oversold area. Dogecoin Forms Bullish Divergence The most notable feature of the chart is a series of regular bullish divergences—the price establishes progressively lower lows even as the RSI tracks higher lows. The Cantonese Cat illustrates three such inflection points: the first point in August 2024, the second point in March and April 2025, and the most recent point in mid-June.

Historically, the first signal that appeared before the parabolic price increase in the fall took DOGE from a high of $0.05 to a daily peak just shy of $0.23, an increase of nearly 300%. The divergence in March signaled a 100 percent recovery back to the $0.26 area, a previous support level that is now serving as resistance overhead. "DOGE Daily – Bullish Divergence with RSI," Cantonese Cat wrote in his post, letting the annotated arrows speak louder than the prose. A chart inserted to the right of the graph emphasizes the textbook definition: in the highlighted quadrant, the price is falling while momentum is rising, a configuration often understood as buyers quietly absorbing supply. Downtrend Channel and Key Support Line The current structural context adds weight to the signal. Since peaking in November at over $0.48, the price has been returning inside a descending channel. Within that broader channel, Dogecoin is currently retesting the previous downward resistance line—this line provided strong resistance throughout March and April of this year—which was eventually broken in early May and is now acting as an important support near $0.163.

Just below this reverse test is a multi-year uptrend line currently near the $0.142 level. If both of those levels fluctuate, the actual lower boundary of the descending channel will be slightly lower at around $0.139, only providing the buyers with a narrow buffer of about three cents to protect. According to Fibonacci's perspective, the 0.786 retracement level at $0.1826—combined with the 20 and 50-day exponential moving averages as well as the midline of the channel at $0.172—forms the first ceiling that must be cleared to change momentum in the short term. A breakout in that area will expose the 0.618 level at $0.247 and the 100-day EMA. Subsequent barriers stack up at the 0.5 retracement ($0.292), 0.382 ($0.338), and 0.236 ($0.3939), each barrier corresponding to previous congestion zones in the winter bull run. The volume has started to gradually fall as the price approaches the support level, while the 14-period RSI remains anchored in the middle of 30—still technically oversold, but showing a slight increase reflecting the bullish divergence marked by Cantonese Cat. For short sellers, a decisive daily close below the multi-year trend line will invalidate that divergence setup and could potentially push DOGE towards the horizontal liquidity range between $0.135 and $0.13, with the final capitulation target around $0.10—the base position from October last year.