By Km Fazi 
Dogecoin’s price action on the daily timeframe is beginning to show early signs of trend exhaustion, raising the possibility that the prolonged downtrend may be losing strength. After months of steady decline, the largest meme coin by market capitalization is now forming a technical setup that could mark a potential turning point.
Technical indicators suggest that bearish momentum is weakening as DOGE continues to consolidate near long-term support around the $0.12 level, a zone that has historically attracted buyers.
RSI Divergence Signals Bearish Momentum Is Fading
One of the most notable developments appears on the Relative Strength Index (RSI). While Dogecoin’s price has revisited the same support area near $0.12, the RSI has failed to print a lower low. Instead, momentum has formed a higher low, creating a bullish divergence between price and indicator.
This type of RSI divergence often suggests that sellers are losing control and that downside pressure is diminishing. In past market cycles, similar divergence structures on DOGE have preceded relief rallies or trend reversals, especially when they occur at major support levels.
Double Bottom Structure Strengthens the Bullish Case
In addition to RSI divergence, Dogecoin’s price action appears to be forming a double-bottom pattern along the lower boundary of a descending channel. This structure typically signals seller exhaustion and can indicate early-stage accumulation by longer-term participants.
The longer DOGE holds above this base, the stronger the case becomes that demand is quietly absorbing sell pressure. This type of price behavior often develops before a more decisive directional move.
From a confirmation standpoint, analysts note that Dogecoin would need to reclaim and hold above $0.16 to validate the reversal structure. However, a sustained breakout above $0.31 would be required to signal the beginning of a full-scale bullish rally.
Weekly Fractal Suggests Potential for Expansion
Zooming out to the higher timeframe, Dogecoin’s weekly chart presents an interesting historical parallel. The current structure resembles a fractal that preceded a 331% price expansion in late 2024.
During that previous cycle, DOGE spent several months grinding lower before forming a rounded base. Once momentum shifted, price entered a near-vertical rally. The current setup shows a similar rounded recovery attempt followed by a controlled pullback into long-term support.
At the time of writing, Dogecoin is trading around $0.1221, sitting at the base of what could become the next expansion phase if the fractal continues to play out. While confirmation is still needed, the technical picture suggests that Dogecoin may be transitioning out of its corrective phase and positioning for a larger move in the months ahead.