Breaking through resistance – Can DOGE hold the momentum?

Dogecoin [DOGE] has recently captured attention after signaling its first-ever bullish divergence on the RSI daily chart in 2025.

Dogecoin (DOGE) has recently shown signs of recovery, signaling its first-ever bullish divergence on the RSI daily chart in 2023. This technical pattern suggests that the memecoin could be preparing for an uptrend.

At press time, Dogecoin was trading at $0.2659, showcasing a 2.23% rise over the past 24 hours. As DOGE consolidates within a descending wedge, the question arises: will this bullish divergence pave the way for a sustained rally?

Source: X

Breaking through resistance – Can DOGE hold the momentum?

A closer examination of DOGE’s price action reveals its consolidation within a broad descending wedge pattern. While the bullish divergence on the RSI hints at a potential upward movement, it’s worth noting that the breakout has not yet occurred.

If DOGE manages to hold support at $0.25 and breaks through resistance, we could see a significant rally unfolding. Investors are advised to monitor the price action closely to observe if the breakout materializes.

Source: TradingView

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

Dogecoin’s Total Value Locked (TVL) has seen a slight uptick, moving from $4.24 million to $4.68 million. This increase, although positive, is rather modest and does not yet indicate a massive shift in market sentiment.

The growth in TVL suggests a gradual rise in interest towards DOGE, but whether this will culminate in a significant price increase remains to be seen. Therefore, further monitoring of the TVL in the coming days will be crucial to assess 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 is approaching its fair market value but is not significantly overbought.

For a further upward movement to occur, we can expect to see an increase in 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 a weak trend strength, while the disparity between the directional indices signals that bearish pressure is still dominant. However, if buying momentum picks up, we could see DOGE breaking 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.

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.