Dogecoin [DOGE] has recently sparked interest by indicating its first-ever bullish divergence on the RSI daily chart in 2025. This technical indication suggests that the digital currency may be on the brink of a potential upward trend.
As of the latest update, Dogecoin was being traded at $0.2659, showing a 2.23% rise in the past 24 hours.
The important query now arises: Will this bullish divergence result in a sustained surge, or will market fluctuations impede Dogecoin’s breakout?
Breaking Resistance – Can DOGE Sustain its Momentum?
DOGE’s price had been consolidating within a wide descending wedge formation.
The meme-inspired coin is still positioned below the breached demand zone. While the bullish divergence on the RSI indicates the potential for an upward movement, the breakout has not materialized yet.
If DOGE manages to hold the support level at $0.25 and break through resistance, a substantial surge could be on the horizon. Investors need to closely monitor the price trends to gauge the likelihood of this breakout occurrence.
TVL Surge – Gradual Growth or Early Sign of a Larger Shift?
DOGE’s Total Value Locked (TVL) has slightly increased from $4.24 million to $4.68 million. Despite being a positive development, this uptick is moderate and does not yet indicate a significant change in market sentiment.
The rise in TVL does reflect a growing interest in DOGE, but it is premature to conclude whether this will lead to a substantial price surge.
Hence, continuous monitoring of the TVL in the upcoming days will offer valuable insights into the sustainability of this growth trend.
MVRV Ratio – Justifiable Value or a Sign of Caution?
As of the latest data, DOGE’s MVRV ratio was recorded at 77.7%. This figure suggests that Dogecoin was approaching its fair market value without being overly overbought.
Further upward movement would likely necessitate heightened buying interest.
A rising MVRV ratio might indicate potential overvaluation of DOGE, which could trigger price adjustments.
Thus, investors should closely monitor this metric to evaluate the risk of overpricing.
Technical Indicators – What Insights Do the RSI and DMI Offer?
The RSI currently stands at 40.96, indicating a neutral market sentiment with restricted buying momentum. Moreover, the DMI exhibits a positive Directional Index (+D) at 9.31, a negative Directional Index (-D) at 33.24, and an ADX of 24.53.
The ADX suggests a weak trend strength, while the contrast between the directional indices points towards prevailing bearish pressure.
Nevertheless, an upsurge in buying momentum could propel DOGE out of its ongoing consolidation phase.
Conclusion – Is DOGE Poised for a Breakout?
Despite encouraging technical signals, the likelihood of Dogecoin’s breakout remains uncertain. The bullish divergence on the RSI is a hopeful sign, yet the cryptocurrency has not breached the crucial resistance levels as of yet.
For a successful breakout, DOGE must sustain its support levels and draw in more buying interest.
While the potential for an upward rally exists, the ability of Dogecoin to maintain its momentum hinges on broader market dynamics and investor sentiment in the forthcoming weeks.