DOGE May Be Quietly Setting a Trap

Dogecoin (DOGE) may be flashing an early sign that selling pressure is starting to lose steam, and a weak bullish relative strength index (RSI) divergence has appeared on the meme coin’s 4-hour chart, hinting at a possible short-term shift in momentum.

On the price chart, shared by popular cryptocurrency expert Trader Tardigrade in an X post on December 18, DOGE continues to print lower lows. However, the RSI tells a slightly different story. Instead of confirming the latest price dip, RSI has formed a higher low, a classic divergence pattern that often signals weakening downside momentum.

What a Weak Bullish Divergence Means

Bullish divergence doesn’t guarantee an immediate reversal. Instead, it suggests that sellers may be running out of force, even if the price hasn’t responded yet. On lower timeframes like the 4-hour chart, this kind of signal often precedes consolidation, a relief bounce, or at least a pause in the downtrend.

In this case, the divergence is described as ‘weak,’ meaning it should be treated as an early alert rather than a confirmation. Strong bullish follow-through typically requires additional signals, such as volume expansion, reclaiming key levels, or broader market support.

For the time being, DOGE is changing hands at the price of $0.1260, which represents a decline of 2.93% in the last 24 hours, an 8.5% dip across the previous seven days, and an accumulated loss of 19.65% on its monthly chart.

Why DOGE Traders are Watching Closely

Dogecoin has been under sustained pressure, making any momentum shift noteworthy. When divergence appears after an extended decline, it often reflects growing disagreement between price action and underlying momentum, which is a setup that traders monitor closely for short-term opportunities.

Still, divergence works best in context. If DOGE fails to attract buyers, the signal can be invalidated quickly. For now, the chart suggests downside momentum is slowing, but not yet reversing. In other words, Dogecoin isn’t bullish yet. But the RSI is quietly hinting that the balance between buyers and sellers may be starting to change.

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