The price of DOGE has entered a historical Rebound zone, but will this time be different?

Gate News bot reports that Bitcoinist states that DOGE has once again returned to a familiar price range, which has historically served as a launchpad for a pump. In the latest 4-hour Candlestick Chart, DOGE is currently approaching the support level of $0.168 to $0.172, after rebounding from this level earlier this month. Despite the price fall, from a technical perspective, the internet memes coin is poised for a bullish reversal, with the movement of its relative strength index (RSI) suggesting a potential shift in momentum.

The 4-hour Candlestick Chart for DOGE shows a clear support level that has acted as a key reversal zone three times in the past ten days. Each time DOGE has fallen into this zone, it has quickly stabilized and pumped upwards. The latest Candlestick Chart indicates that the asset is now pushing towards this zone again, raising the question of whether the same Rebound pattern will repeat.

This phenomenon was first discovered by cryptocurrency analyst Trader Tardigrade on the social media platform X. Interestingly, the support area has been touched multiple times, indicating that every time the price enters the red zone between approximately $0.1663 and $0.1720, there is buying interest. Although DOGE has been in a broader downtrend since its peak of around $0.207 (as shown in the figure below), its support level has remained intact so far.

(Source: X)

What is particularly noteworthy about this trend is the corresponding structure of the RSI on the 4-hour chart. Although the price lows have declined, the RSI is forming a series of higher lows, which is an early sign of hidden bullish divergence. This divergence suggests that even if the price action has not fully reflected this yet, the underlying momentum is gradually shifting in favor of buyers.

The analyst of the chart points out that whenever DOGE enters this area, the RSI support line prevents it from breaking below the previous low. From a technical perspective, this indicates that its internal strength may be strengthening, and if external market factors such as tensions in the Middle East do not affect its trend, this could pave the way for a rebound.

The biggest question now is whether the third test of the support level will lead to another Rebound, or if this pattern has become too predictable. If there is another Rebound, it could eventually push DOGE to break above $0.20. However, if the RSI support level is breached and the price falls below $0.166, then at least in the short term, the outlook for DOGE may quickly shift from bullish divergence to a confirmed fall.

As of the current chart, the RSI is still above its ascending support line, and the price is currently above the lower limit of this range, which provides hope for another rise this month. As of the time of writing, the trading price of DOGE is $0.1738, having fallen by 2.4% in the past 24 hours.