Dogecoin (DOGE) is flashing multiple bullish signals despite crashing to a three-year low of around $0.067, according to technical analysis and on-chain data. The meme coin is down 90% from its all-time high and currently trades below $0.07 with a market capitalization of about $10.8 billion, ranking as the 10th-largest cryptocurrency.
Analysts point to a bullish divergence on price charts, where the price made a lower low but momentum indicators such as the Relative Strength Index (RSI) formed a higher low. This suggests weakening selling pressure and often precedes a trend reversal. The daily and monthly RSI for DOGE have reached their most oversold levels since the 2022 market bottom, indicating seller exhaustion.
Adding to optimism, trader Ali Martinez noted that the TD Sequential indicator has flashed buy signals on the monthly, weekly, 3-day, and daily charts — a rare setup that could herald a major price rally. Martinez also highlighted a 16% jump in weekly active DOGE addresses, from roughly 38,000 to 44,000, signaling increased network activity and strengthening momentum.
Prominent analysts like MikybullCrypto have set ambitious targets, forecasting a potential rise to $1 during the next bullish reversal. While a bullish divergence is not a guarantee of a rally and broader market conditions remain volatile, the confluence of oversold RSI, TD Sequential buy signals, and rising on-chain metrics provides a cautiously optimistic outlook for DOGE holders in the short term.
