The daily chart of Dogecoin, published by the anonymous trader Cantonese Cat on Wednesday, suggests that this meme coin may be stirring after a prolonged downturn.

At 02:26 UTC, TradingView's snapshot recorded DOGE changing hands at $0.16979, slightly lower in the session, while the 14-period relative strength index stood at 35.72, just north of the classic oversold zone.

Dogecoin Forms Bullish Divergence

The most prominent feature of the chart is a series of consistent bullish divergences—price establishes progressively lower lows even as the RSI tracks higher lows. Cantonese Cat illustrates three such inflection points: the first in August 2024, the second in March and April 2025, and the most recent in mid-June.

Historically, the first signal appeared before the parabolic rally in the fall that took DOGE from a high of $0.05 to a peak of just below $0.23, a nearly 300% increase. The divergence in March signaled a 100 percent recovery back to the $0.26 zone, a previous support level now acting as resistance overhead.

"DAILY DOGE – Bullish divergence with RSI," Cantonese Cat wrote in their post, letting the annotated arrows speak louder than prose. A diagram inserted to the right of the chart emphasizes the textbook definition: in the highlighted quadrant, price slopes downward while momentum slopes upward, a configuration often understood as buyers quietly absorbing supply.

Descending Channel and Main Support Line

The current structural context lends weight to the signal. Since peaking in November at above $0.48, price has been returning inside a descending channel. Within that broader channel, Dogecoin is now testing 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 critical support near $0.163.

Just below this retest is the multi-year ascending trend line currently near the $0.142 level. If both levels fluctuate, the actual lower boundary of the descending channel will be just slightly lower at around $0.139, merely offering the bulls a narrow buffer of about three cents for protection.

From a Fibonacci perspective, the 0.786 retracement level at $0.1826—combined with the 20 and 50-day moving averages as well as the mid-channel line at $0.172—forms the first ceiling that must be cleared to shift momentum in the short term. A breakout in that area would expose the 0.618 level at $0.247 and the 100-day EMA. Subsequent resistance barriers stack at the 0.5 retracement ($0.292), 0.382 ($0.338), and 0.236 ($0.3939), each corresponding to previous congestion zones during the winter rally.

Volume has started to gradually decline as price approaches the support threshold, while the 14-period RSI remains anchored in the mid-30s—still technically oversold but showing a slight uptick reflecting the bullish divergence that Cantonese Cat has marked. For short sellers, a decisive daily close below the multi-year trend line would invalidate that divergence setup and could potentially push DOGE toward the horizontal liquidity band between $0.135 and $0.13, with the ultimate capitulation target around $0.10—the position of the base last October.