Dogecoin (DOGE) is showing signs of a potential bullish reversal, prompting a crypto analyst to highlight four reasons for considering it a good investment.
A Bullish Divergence pattern on the Relative Strength Index (RSI) indicates weakening bearish momentum, suggesting a trend reversal may be on the horizon.
Dogecoin's RSI entering oversold territory on the daily chart hints at a possible price bounce, supported by the formation of a higher low breaking the downtrend pattern.
The presence of a critical descending trendline that has historically acted as a resistance for Dogecoin sets the stage for a potential breakout and rally towards $0.4, representing a significant upside potential.