Buckle Up: DOGE Bulls and Bears Collide at Critical Chart Level

Dogecoin (DOGE) just closed the week with a rare bullish signal, even as short-term charts stay firmly bearish.

A fresh divergence on the weekly timeframe clashes with a confirmed breakdown on lower timeframes, putting DOGE at a critical inflection point. The next few sessions could decide whether this move becomes another fakeout or the start of a much larger reversal.

Weekly Chart Shows Bullish Divergence Forming

On the weekly timeframe, DOGE printed a classic bullish divergence. Though the price pushed to a lower low, the Relative Strength Index (RSI) formed a higher low, signaling waning downside momentum, per the analysis by renowned cryptocurrency trading expert Trader Tardigrade on January 26.

This setup often appears near macro pullback lows, especially after extended declines. The divergence suggests sellers may be exhausting, even though the price has not yet confirmed a trend reversal.

Adding weight to the signal, the structure, duration, and magnitude of the current pullback closely mirror a previous DOGE correction. In that prior case, DOGE went on to rally aggressively once downside pressure faded.

Lower Timeframes Remain Bearish After Triangle Breakdown

Despite the constructive weekly setup, Dogecoin’s 4-hour chart, which the expert posted shortly after, told a different story.

Prices broke down from a descending triangle, a pattern typically associated with bearish continuation. After the breakdown, DOGE retested the triangle’s apex near $0.11464 and was rejected.

That rejection signals sellers are still active in the short term, increasing the risk of another leg lower before any sustained recovery can take hold.

Why This Matters for Dogecoin Traders

Currently, Dogecoin is caught between macro strength and micro weakness.

Weekly indicators suggest a potential cycle-style pullback completion, whereas lower timeframes warn that downside pressure hasn’t fully cleared. Historically, similar conditions have led to volatile consolidation before a decisive move.

If weekly momentum follows through, DOGE could attempt a push toward its next major high. If not, failure to reclaim the breakdown zone would keep bearish targets in play. 

Meanwhile, one of the most popular altcoins is changing hands at the price of $0.122, which represents a 1.2% gain on the day, a decline of 5.4% across the week, and a 0.7% loss in the past month, according to the latest charts.

For now, Dogecoin sits at a technical crossroads, and the resolution may arrive sooner than traders expect.

DOGE Price Today

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