Dogecoin has once again returned to a familiar price range that has historically acted as a launchpad for upward moves. In the latest 4-hour candlestick timeframe, Dogecoin is now approaching the $0.168 to $0.172 support band, a level it previously bounced from earlier this month. Despite this price decline, the meme coin is technically ready for a bullish reversal, with its Relative Strength Index (RSI) behavior hinting at a possible shift in momentum.
Incoming Support Test As Dogecoin Declines To Familiar Zone
Dogecoin’s 4-hour candlestick price chart reveals a distinct support zone that has acted as a key reversal region on three separate occasions over the past ten days. Every time Dogecoin has dipped into this zone, it has quickly found footing and pushed upward. The latest candle action shows the asset is now pushing toward this zone again, inviting questions on whether the same rebound pattern will repeat.
This phenomenon was first noted on the social media platform X by crypto analyst Trader Tardigrade. Interestingly, the support area is marked by multiple wick touches, indicating buying interest each time the price enters the red band between roughly $0.1663 and $0.1720. Although Dogecoin has been in a broader downtrend since peaking around $0.207, as shown in the chart below, its support has so far remained intact.
What makes this setup particularly noteworthy is the accompanying RSI structure on the 4-hour chart. Despite lower price lows, the RSI is forming a series of higher lows, which is an early sign of a hidden bullish divergence. This divergence suggests that the underlying momentum is gradually shifting back in favor of buyers, even if the price action hasn’t fully reflected it yet.
The analyst behind the chart points out that each time Dogecoin enters this zone, the RSI support line prevents the oscillator from falling below its previous low. In technical terms, this suggests there may be growing strength under the surface, which could pave the way for a rally if external market conditions like the tensions in the Middle East don’t derail the setup.
Will This Bounce Repeat The Last Two Or A Breakdown Instead?
The big question now is whether this third test of the support zone will result in yet another rebound or if the pattern has become too predictable. If another rebound occurs, it will ultimately lead to Dogecoin reaching a higher high above $0.2. However, if RSI support breaks alongside the price dipping below $0.166, the outlook could shift rapidly from bullish divergence to a confirmed breakdown, at least in the short term.
As of the current chart, the RSI is still above its ascending support line, and the price is currently above the lower boundary of the zone, keeping hopes alive for another upward move this month. At the time of writing, Dogecoin is trading at $0.1738, down by 2.4% in the past 24 hours.
Featured image from Pixabay, chart from Tradingview.com
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