Dogecoin [DOGE] has recently grabbed investor attention after signaling its first-ever bullish divergence on the RSI daily chart in 2025. This technical indicator suggests a potential uptrend, but market volatility remains a significant concern.
Breaking Resistance: Can DOGE Maintain Momentum?
At press time, Dogecoin was trading at $0.2644, Despite this, DOGE’s price remains within a broad descending wedge pattern, struggling to break out of key resistance levels.
The bullish RSI divergence indicates the possibility of a price surge, but DOGE has yet to breach its demand zone. If the cryptocurrency holds support at $0.25 and successfully breaks resistance, a substantial rally could unfold. Investors should monitor price action closely to assess whether a breakout materializes.
TVL Growth: Steady or a Bullish Signal?
Dogecoin’s Total Value Locked (TVL) has seen a modest increase from $4.24 million to $4.68 million. While this suggests rising interest in DOGE, the uptick is not significant enough to indicate a major shift in market sentiment. A sustained increase in TVL over the coming days will be crucial in determining whether the growth trend can support a long-term rally.
Also Read: Dogecoin (DOGE) Faces 16.75% Drop, But Can Strong Support at $0.20 Spark a Bullish Reversal?
MVRV Ratio: Fair Value or Overvaluation Risk?
DOGE’s MVRV ratio currently stands at 77.7%, suggesting that it is approaching fair market value without being overbought. However, if this ratio continues to climb, it could indicate overvaluation, leading to potential price corrections. Investors should watch this metric closely to assess risk levels.
Technical Indicators: RSI and DMI Insights
- RSI at 40.96: Signals neutral market sentiment with limited buying momentum.
- DMI Analysis: Positive Directional Index (+D) at 9.31, Negative Directional Index (-D) at 33.24, and ADX at 24.53 indicate weak trend strength and ongoing bearish pressure.
For a confirmed uptrend, DOGE needs stronger buying momentum and a positive shift in these technical indicators.
Conclusion: Is DOGE Set for a Breakout?
While DOGE’s bullish divergence presents a promising outlook, key resistance levels remain unbroken. A successful breakout will require sustained support at $0.25 and increased buying interest. Investors should remain cautious, as broader market trends and sentiment will play a crucial role in determining whether Dogecoin can sustain its upward trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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