I REALLY RESPECT DIVERGENCES, but after many years, I still don’t understand these "WRONG" divergences. They feel like a lottery, especially on $DOGE 😅
Red Line (Bearish Divergence)
The price forms Higher Highs, while the RSI forms Lower Highs.
This is a classic bearish divergence, which may indicate a potential correction downward. Such behavior signals a weakening momentum despite the rising price.
Green Line (Bullish RSI Recovery)
The RSI forms Higher Lows after a downtrend.
This suggests a gradual recovery in buyer strength. This signal can be considered positive for a potential continuation of growth if the price breaks through resistance levels.
Potential Scenarios:
Correction Downward:
Due to the bearish divergence, a price drop to previous support zones is possible.
First support level: $0.40 (nearest consolidation zone).
Second support level: $0.35 (a deeper correction in case of weakening overall market momentum).
Continuation of Growth:
If the price breaks the upper resistance level (around $0.48-$0.50), this could signal further growth.
Target for growth: $0.55 (a potential high after the breakout).
Conclusion:
In the short term, a correction to $0.40 can be expected.
If support holds, Dogecoin may attempt to recover and grow to $0.55.
The key moment is to wait for the daily or weekly timeframe to close to confirm whether a breakout or correction will occur.