DOGE Forms Bullish Falling Wedge Against Bitcoin; What It Means

In Brief

• DOGE/BTC is forming a bullish falling wedge.
• Dogecoin’s monthly RSI is at historic lows.
• Signals suggest a possible trend reversal.

Dogecoin (DOGE) may be approaching a technical turning point as multiple chart indicators begin flashing potential reversal signals. Its monthly RSI has reached its lowest level, a zone that historically coincides with the end of major downtrends. At the same time, the DOGE/BTC trading pair is forming a falling wedge pattern, a structure traders often interpret as bullish.

Dogecoin RSI Signals Possible Trend Shift

On the monthly timeframe, Dogecoin’s Relative Strength Index (RSI) has dropped to levels rarely seen in the asset’s history, according to analysis shared by prominent cryptocurrency market expert Trader Tardigrade in an X post on March 6.

RSI is a momentum indicator that measures the speed and magnitude of price movements. When it falls toward the lower end of its range, it can signal that selling pressure may be reaching exhaustion.

*Dogecoin monthly RSI chart. Source: Trader Tardigrade/X*

In the chart shared by the analyst, previous periods where RSI reached similarly low levels were followed by strong upward trends. The current reading suggests that the prolonged downtrend could be nearing its final stage if momentum begins shifting back toward buyers.

However, RSI alone does not confirm a reversal. Traders typically watch for additional technical patterns before interpreting it as a sustained trend change.

DOGE/BTC Falling Wedge Forms

Another chart focuses on the Dogecoin to Bitcoin trading pair, which shows a falling wedge pattern developing on the weekly timeframe.

*Dogecoin BTC falling wedge chart. Source: Trader Tardigrade/X*

A falling wedge occurs when the price forms a narrowing downward channel with lower highs and lower lows. Though the pattern reflects declining momentum, it often precedes a breakout once the price escapes the upper boundary of the wedge.

Technical analysts consider the structure bullish because it indicates that downward pressure is weakening. If the wedge resolves to the upside, DOGE could begin outperforming Bitcoin again after an extended period of relative weakness.

For the time being, Dogecoin is trading at $0.09173, down 3.8% on the day, 7.3% across the week, and 14.6% in the last month, according to the most recent price chart information.

*DOGE price 7-day chart. Source:* *CoinGecko*

Taken together, the RSI signal and the falling wedge pattern suggest that Dogecoin may be entering a phase where a broader trend shift becomes possible if buying pressure returns.