Bullish Divergence Hint At Dogecoin Price Surge

On November 20, crypto analyst Trader Tardigrade on X (formerly Twitter) announced the appearance of a hidden bullish divergence on the Dogecoin 4-hour Relative Strength Index (RSI) chart

A hidden bullish divergence on the Dogecoin price chart has signaled possibilities of a significant uptrend. Based on this new technical pattern, a crypto analyst has projected a target of $0.7 for the meme coin.

On November 20, crypto analyst Trader Tardigrade on X (formerly Twitter) announced the appearance of a hidden bullish divergence on the Dogecoin 4-hour Relative Strength Index (RSI) chart. This technical indicator showcases a divergence between an asset’s price and its momentum, which can be used to anticipate potential trend reversals.

In this case, the RSI hidden bullish divergence occurs when the price of Dogecoin forms higher lows, while its RSI forms lower lows. This indicates that despite Dogecoin’s RSI showing declining momentum, its price is still maintaining strength, suggesting a higher potential for an uptrend continuation.

As can be seen on Trader Tardigrade’s Dogecoin chart, the RSI Hidden Bullish Divergence can be spotted forming at around the $0.37 price level. The analyst has set a bullish target at $0.7 for Dogecoin, highlighting a steady but continuous growth from its current price if it can maintain positive momentum.

At the time of writing, Dogecoin is trading at $0.38, and has seen a 165.19% surge over the past month, according to CoinMarketCap. Despite repeatedly failing to break the $0.4 threshold, Dogecoin could see an 84.2% price increase from its current value if the projected positive growth driven by the Hidden Bullish Divergence holds valid. This would effectively push the meme coin close to or even above it’s All-Time High (ATH) of $0.73 in May 2021 during the last bull market.

Meanwhile, another X post by crypto analyst Steph maintains an optimistic outlook on the Dogecoin price, suggesting that the meme coin could be heading toward a new ATH this bull cycle.

In the post, Steph shared a 2-year Dogecoin price chart, pinpointing a bullish target between $1.4 and $1.8 for the meme coin. Following the target’s position on the Dogecoin chart, the analyst suggests that this ATH rally could either take place before the end of 2024 or in 2025.

Based on current market trends, this massive price surge to a new ATH could be potentially driven by Elon Musk’s influence through his newly proposed organization, the Department of Government Efficiency (D.O.G.E). Additionally, Donald Trump’s upcoming inauguration as the 47th United States (US) President could also serve as a strong catalyst that could propel the Dogecoin price higher.