- The bullish divergence of Dogecoin suggested a potential uptrend, but the market volatility remains a concern.
- TVL growth and technical indicators pointed to moderate potential, for which more buying interest was needed for an outbreak.
Dogecoin [DOGE] Recently caught attention after signaling his very first bullish divergence on the RSI Daily Chart in 2025. This technical pattern emphasized that the cryptocurrency is about to be a potential uptrend.
At the time of the press, Dogecoin was traded at $ 0.2659, which reflected an increase of 2.23% in the last 24 hours.
The big question is: will this bullish divergence lead to a persistent rally, or will the market volatility prevent Dogecoin from breaking out?
Source: X
By breaking through resistance – can doge hold the momentum?
The price of Doge was consolidating within a wide falling wig pattern.
The Memecoin is still under the broken demand zone. Although the bullish divergence on the RSI suggests a potential upward movement, the outbreak has not yet taken place.
If Doge has support on $ 0.25 and the resistance breaks, a significant rally can be on the horizon. Investors must follow the price promotion carefully to see if the breakout occurs.
Source: TradingView
TVL Surge – Steady Growth or a sign of something bigger?
Doge’s total value locked (TVL) has seen a slight increase from $ 4.24 million to $ 4.68 million. Although this increase is positive, it remains modest and does not yet indicate a massive shift in market sentiment.
The growth in TVL indicated that interest in doge is gradually increasing, but it is still too early to predict whether this will lead to a considerable price increase.
That is why further monitoring of the TV will offer crucial insight into the sustainability of this growth in the coming days.
Source: Defillama
MVRV ratio – Real value or warning sign?
At the time of writing, the MVRV ratio of Doge was 77.7%. This suggests that Dogecoin was approaching its real market value but is not significantly overbought.
Further upward movement probably requires an increased purchase interest rate.
If the MVRV ratio continues to climb, this can indicate that Doge is overvalued, which can lead to price corrections.
That is why investors must keep a close eye on this statistics in order to assess the risk of overvaluation.
Source: Santiment
Technical indicators – What do the RSI and DMI show?
The RSI is at 40.96, which indicates a neutral market sentiment with a limited purchase momentum. In addition, 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 inequality between the directional indices signals that Beerarish pressure is still dominant.
However, if buying Momentum absorbs, Doge can break out of its current consolidation phase.
Source: TradingView
Conclusion – Is DOGE set for an outbreak?
Despite some positive technical signals, the outbreak of Doge remains uncertain. The bullish divergence on the RSI is a promising indicator, but the price is not yet broken from the most important resistance levels.
Read Dogecoin’s [DOGE] Price forecast 2025–2026
For a successful outbreak, Doge support will have to retain and attract further purchase interest.
Although the potential for a rally exists, whether Dogecoin will be dependent on a broader market dynamics and investor sentiment in the coming weeks.
