Dogecoin has once again entered a price range that has historically served as a starting point for upward movements.

On the recent four-hour candlestick timeframe, Dogecoin is approaching a support zone between $DOGE $0.168 and $0.172, from which it rebounded earlier this month.

Despite a price decline, technical analysis suggests that this cryptocurrency is poised for a bullish reversal, as indicated by the movement of the Relative Strength Index (RSI), which points to a potential shift in market direction.

The four-hour chart clearly highlights this support zone, which has helped reverse the price upward three times in the past ten days. Each time the price entered this zone, buying pressure immediately increased, pushing the price higher. The current chart shows Dogecoin moving toward this same area, raising the question: will this rebound happen again?

This specific support area was first highlighted by crypto analyst Trader Tardigrade on the social media platform X. Interestingly, this zone has seen repeated wick touches, indicating buying interest, and has kept the price stable between $DOGE $0.1663 and $0.1720. Although Dogecoin has been in a downward trend recently, this support has held strong so far.

The RSI structure is particularly significant because, despite the price decline, RSI’s lower points are trending upward, signaling a hidden bullish divergence. This suggests that buyer strength is gradually increasing, even though the price hasn’t fully reflected this change yet.

According to the analyst, every time Dogecoin reaches this support zone, the RSI support line prevents it from falling further, which is a strong buying signal. However, external factors, such as escalating tensions in the Middle East, could impact this bounce.

The big question now is whether this third test of the support zone will lead to another strong rebound, or if this pattern has become too predictable, potentially causing the price to drop.

If a bounce occurs, $DOGE could surpass the $0.2 level. However, if the RSI support breaks and the price falls below $0.166, the market trend could quickly turn bearish.

According to the current chart, the RSI remains above the support line, and the price is also above the lower boundary of this zone, keeping hopes alive for another upward move this month.

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This post is not financial advice from the author. If you want to invest in the crypto market, conduct thorough research before making any purchases. 😊

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