Dogecoin Shows Technical Reset as RSI Approaches Mid-Level Support

• Dogecoin’s RSI dropped to 55.49, approaching neutral 50 level.
• Hidden bullish divergence signals possible upward momentum continuation.
• Price fell to $0.2161 amid rising volume and steady selling pressure.

Dogecoin’s daily chart indicates a technical reset following a recent pullback from an overbought condition. The Relative Strength Index (RSI), a momentum indicator, has dropped close to the 50 level, currently standing at 55.49. This decline points to a potential phase where the cryptocurrency could regain upward momentum.

RSI Nears Key Level with Hidden Bullish Divergence Observed

The RSI is a technical indicator that measures the speed and change of price movements, signaling overbought or oversold conditions. According to an analysis prepared by Trader Tardigrade, Dogecoin’s retreat from the overbought zone is visible as the RSI moves downward. A reading near 50 is generally considered a neutral zone, suggesting the market might stabilize before the next directional move.

A notable technical pattern appearing on Dogecoin’s chart is a hidden bullish divergence. This occurs when the price action forms a higher low, but the RSI registers a lower low. This pattern often indicates underlying strength despite the recent pullback. It may signal that momentum is building for a potential upward trend continuation.

Dogecoin’s higher low formation, accompanied by the RSI’s lower low, reflects an important dynamic in the market’s technical setup. Such divergence can precede price recovery, as it points to possible buying interest returning at lower levels. 

Price Action Market Context and Outlook

While the RSI decline confirms a current cooling phase after a strong run, the approach to the 50 mark provides a crucial juncture. The balance between bullish and bearish forces may determine the next trend direction. A deeper dive into the ongoing market trend as of latest by CoinMarketCap indicates that Dogecoin (DOGE) closed at $0.2161 , down 3.55% over the past 24 hours. The market cap decreased by 3.78%, now standing at $32.28 billion. 

Trading volume for the last 24 hours surged by 102.27%, reaching $2.87 billion. This volume equates to 8.93% of the market cap, indicating higher trading activity.  Additionally, the fully diluted valuation matches the market cap at $32.21 billion. The price chart shows volatility, beginning near $0.2239 and fluctuating throughout the day. 

Notably, price peaks appeared nearing $0.235 as the trend reversed after these peaks, showing a steady decline. By the afternoon, the price fell below $0.220, maintaining downward momentum. The daily chart movements suggest that Dogecoin’s pullback has not fully negated prior gains. Instead, the hidden bullish divergence alongside the RSI level near 50 reflects potential for renewed momentum.