Dogecoin: RSI hits bullish divergence – What this means for prices

• Dogecoin’s bullish divergence suggested a potential uptrend, but market volatility remains a concern.
• TVL growth and technical indicators pointed out moderate potential, requiring more buying interest for a breakout.

Dogecoin [DOGE]  has recently captured attention after signaling its first-ever bullish divergence on the RSI daily chart in 2025. This technical pattern highlighted that the cryptocurrency could be on the verge of a potential uptrend.

At press time, Dogecoin was trading at $0.2659, reflecting a 2.23% increase over the past 24 hours.

The big question is: will this bullish divergence lead to a sustained rally, or will market volatility prevent Dogecoin from breaking out?

Source: X

Breaking through resistance – Can DOGE hold the momentum?

DOGE’s price was consolidating within a broad descending wedge pattern. 

The memecoin is still below the breached demand zone. Although the bullish divergence on the RSI suggests potential upward movement, the breakout has not occurred yet.

 If DOGE holds support at $0.25 and breaks through resistance, a significant rally could be on the horizon. Investors should monitor price action carefully to see if the breakout materializes.

Source: TradingView

TVL surge – Steady growth or a sign of something bigger?

DOGE’s Total Value Locked (TVL) has seen a slight increase from $4.24 million to $4.68 million. While this uptick is positive, it remains modest and does not yet signal a massive shift in market sentiment. 

The growth in TVL indicated that interest in DOGE was gradually rising, but it’s still too early to predict whether this will lead to a significant price increase.

Therefore, further monitoring of the TVL in the coming days will provide crucial insight into the sustainability of this growth.

Source: DefiLlama

MVRV ratio – Fair value or cautionary sign?

At the time of writing, DOGE’s MVRV ratio stood at 77.7%. This suggests that Dogecoin was approaching its fair market value but is not significantly overbought.

Further upward movement will likely require increased buying interest. 

If the MVRV ratio continues to climb, it could signal that DOGE is becoming overvalued, which might lead to price corrections.

Therefore, investors should keep a close eye on this metric to assess the risk of overvaluation.

Source: Santiment

Technical indicators – What do the RSI and DMI show?

The RSI is at 40.96, indicating a neutral market sentiment with limited buying momentum. Additionally, the DMI shows 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 weak trend strength, while the disparity between the directional indices signals that bearish pressure is still dominant.

However, if buying momentum picks up, DOGE could break out of its current consolidation phase.

Source: TradingView

Conclusion – Is DOGE set for a breakout?

Despite some positive technical signals, Doge’s breakout remains uncertain. The bullish divergence on the RSI is a promising indicator, but the price has not yet broken out of the key resistance levels. 

Read Dogecoin’s [DOGE] Price Prediction 2025–2026

For a successful breakout, DOGE will need to maintain support and attract further buying interest.

While the potential for a rally exists, whether Dogecoin can sustain upward momentum will depend on broader market dynamics and investor sentiment in the coming weeks.