Key Highlights:
- Dogecoin breaks market structure, hits low near $0.1270
- Substantial RSI bullish divergence hints at a potential trend reversal
- The $0.1350 historical support zone is being retested for a bounce
Market structure shifts in Dogecoin price suggested a break in support, and the crypto is experiencing strong downward pressure. New technical analysis indicates that the downtrend will continue.
However, there are emerging signals that indicate that the price may start to stabilize in a particular area. DOGE has had critical reactions to long-standing support areas on multiple timeframes.
Although the trend is bearish, some patterns hint at a bottoming phase underway if current levels hold.
Breakdown in Market Structure Signals Weakness in Dogecoin Price
Dogecoin price recently broke below a prior swing low, as seen in the 4-hour chart shared by Trader Tardigrade. This movement is identified as a Break of Structure (BOS).
This happened around the $0.14250 level. Going forward, it led to the continuation of the lower low and lower high pattern since early March 2025.
There is a clear downtrend from around $0.2500, where the price formed a lower high (LH) and broke below $0.14250. DOGE dropped to nearly $0.12570 on the new low before a minor rebound.
This break is essential because it is a sign that sellers are still in control, as buyers could not support key support. The BOS also invalidated the temporary consolidation phase between March 11 and 27.
There, Dogecoin price was between $0.14250 and $0.1780. Since that zone failed to hold, traders now focus on lower support zones. This may be close to regions where prices had previously accumulated.
Back-Tested Support Level Could Offer a Temporary Base
On the 3-day Heikin Ashi chart, Dogecoin has returned to a long-standing support level of around $0.1350. Previously, this area was resistant in early 2023 and supported during several tests between April and September 2023.
This support zone was retested and held in March 2024. It sparked a DOGE rally to more than $0.20 later that year. The latest drop has again pushed the token into this historical support zone. This is marked with a large circle on the chart where the price has bounced in the past.
If $0.1350 holds, an upward arrow on the chart indicates a possible move toward higher zones. This move is not confirmed yet. However, previous behavior at this level has often supported price action.
RSI Divergence Indicates Potential Reversal Momentum
Meanwhile, the daily RSI (Relative Strength Index) chart shows two key divergence patterns. The first divergence in early March was classified as a weak reversal.
The token made a new low, and the RSI made an equal low during that period. However, Dogecoin price did recover slightly but could not hold onto the momentum.
The second divergence has formed, showing a lower low in the token’s price and a higher low in the RSI. This is often called a ‘bullish divergence’ and can signify a reversal.
RSI is a momentum tool. If DOGE price continues to fall but momentum improves, it may indicate that sellers are losing strength.
Trader Tardigrade says this new divergence is a “strong reversal type.” This could bring in short-term buyers if it is confirmed.
Broader Altcoin Market Faces Final Correction Phase
Furthermore, the chart labeled “Total 3” shows the current correction has brought the market back to a key trendline. This has been in place since early 2023. Final Capitulation is the breakdown of this trendline.
This event is very similar to the price action of 2020. It was right before a sharp altcoin value rose during the 2021 cycle. As you can see from the chart, similar breakdowns have been followed by strong rallies in the past.
Altseason is the phrase used to describe periods where altcoins outperformed Bitcoin regarding price growth. The visual implies that the current decline may end the correction phase and begin a broader altcoin rally.
If market conditions improve and the support at $0.1350 holds, Dogecoin price could have some room to run again.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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