Dogecoin's RSI signals hidden bullish divergence as price forms a higher low near $0.22 support.
Weekly breakout confirms upside potential with targets at $0.3757, $0.4884, and $0.6160 based on Fibonacci levels.
Momentum recovery aligns with RSI near 55.49 and dynamic support above the 50-week moving average.
A structural breakout from a long-term descending wedge has been completed by Dogecoin, suggesting the possibility of bullish continuation. A fresh period of momentum backed by a steady market structure is suggested by the current price behavior and RSI stance.
RSI Divergence and Momentum Reset
Dogecoin’s daily chart reveals a hidden bullish divergence as RSI resets from overbought levels, signaling improving momentum. Price structure supports this outlook with a higher low, aligning with technical resilience. This setup points to renewed accumulation, with RSI near 55 acting as a potential launch zone.
Following the breakout from the descending wedge in early May, Dogecoin reclaimed levels above $0.23 with rising conviction. This move formed after months of price compression within a falling wedge, typically seen as a bullish reversal setup. RSI peaked above 70 during the initial rally, then declined into neutral territory, cooling overheated conditions and allowing for structural consolidation.
At this stage of the pattern, RSI hovers around 55.49, just above the midpoint, while price forms a higher low. This divergence between rising price and declining RSI marks a hidden bullish signal. Market watchers interpret this behavior as early signs of momentum recovery. Could this higher low mark a directional shift?
Tracking price behavior, the key support at $0.22 holds significance as a demand zone. Buyers previously stepped in around this level, pushing Dogecoin out of the wedge’s confines. The bounce aligns with RSI’s stabilization, indicating that underlying momentum may support further upside.
Breakout Structure and Target Zones
The weekly chart strengthens the bullish outlook, confirming a breakout above the wedge’s upper boundary with volume expansion. Fibonacci projections and historical price behavior identify $0.3757, $0.4884, and $0.6160 as potential upside checkpoints.
Post-breakout, Dogecoin trades above the 50-week moving average, which now acts as dynamic support. This level previously capped upward movement, but now underpins a developing trend shift. Candlestick structure shows a bullish transition, with the breakout candle posting a strong body and follow-through.
Considering historical reactions around the $0.37 zone, this level presents the first resistance hurdle. A clean break could open the path to $0.48, followed by $0.61 levels that align with past congestion zones and Fibonacci-based targets.
In addition, sentiment from traders and market observers shows growing confidence in this breakout structure. The price’s ability to hold above key moving averages adds to the bullish case, but continuation will depend on sustained momentum and volume support. Even so, the setup presents a structured framework for tracking upside scenarios as market dynamics unfold.
The post Dogecoin at a Crossroads: Can This Breakout Trigger a Massive Rally to $0.61? appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
