After retesting the downtrend line, Dogecoin (DOGE) shows strong performance on the daily chart. The former resistance level has now turned into a support level, with the price rebounding to around $0.23 and remaining stable above this level. The current price is $0.242, up 2.5% within 24 hours. After retreating from $0.27, Dogecoin shows solid signs, avoiding further pullback.
The daily RSI indicator shows a hidden bullish divergence: the price formed higher lows while the RSI formed lower lows, indicating that despite weakening momentum, the overall uptrend remains intact. The RSI has exited the overbought zone, suggesting there is still room for upward movement, and the current pullback may be temporary.
Currently, there are no signs of bearish divergence. The RSI indicator has also exited the overbought zone, which means that Dogecoin has room to rise and will not be hindered by insufficient momentum.
A double divergence appears on the 4-hour chart
On the 4-hour chart, Dogecoin formed two bullish divergences from July 24 to 26: one hidden divergence and one regular divergence, both occurring in the same price area, further confirming the possibility of a trend reversal. The price then continued to rise, with buyers entering near the short-term low, consolidating upward momentum after breaking through $0.24. $0.22 remains a key support level.
Active addresses decreased, but the price remained unchanged
On-chain data shows that as of July 27, the number of active Dogecoin addresses decreased from over 100,000 in mid-July to 58,688. Despite the decrease in activity, the price remains stable above $0.24, indicating that large investors may be supporting the market. Dogecoin has returned to the area that previously triggered a rebound, and if it breaks through $0.25, it may further push up to $0.36.
Both the technical analysis and on-chain data for Dogecoin show bullish signals, and the short-term pullback may be a temporary adjustment. If it maintains above the $0.22 support level and breaks through $0.25, it is expected to continue the upward trend.