Dogecoin’s RSI Hints at Potential Hidden Bullish Divergence

Dogecoin's (DOGE) key momentum metric signals a hidden bullish divergence indicating a potential rally toward the $0.10 short-term resistance level. Additionally, the daily chart shows DOGE trading above the 200-day simple moving average, which is viewed as a bullish territory.

DOGE Hidden Divergence

The hidden bullish divergence is created by the Relative Strength Index (RSI), which has printed a lower low, while at the same time, the DOGE price is making a higher low.

This situation can help the bull case scenario as the price is falling at a slower pace than the RSI momentum.

If this hidden divergence holds, then DOGE's price may correct to $0.10, where we established a short-term resistance level.

A daily break and close above this level will open the door for further upside towards November's high at around the $0.15 level.

200-Day SMA

The 200-day Simple Moving Average (SMA) is a critical technical indicator that separates a bull market from a bear market.

Since the beginning of 2022, DOGE's price has traded below the 200-day SMA, signaling that we're in a bearish trend.

However, since last month, the DOGE price broke above the 200-day SMA, and we're technically in bullish territory.

In these conditions, as long as the DOGE price trades above the 200-day SMA, the bulls have the upper hand.

Additionally, the 200-day SMA perfectly aligns with the $0.07 critical support level, which is also the bottom following the FTX-driven crash.