Dogecoin Rebounds After Forming 'Double Bottom'

Dogecoin (DOGE), the world's largest meme cryptocurrency by market value, has regained some poise, having formed a bullish double bottom pattern during the overnight trade.

DOGE has gained over 2% to over 16 cents since early Asian hours, reversing part of Monday's slide from 16.63 cents to 15.67 cents, according to data source CoinDesk.

Per CoinDesk's AI research, the cryptocurrency formed a "double bottom pattern" around the 15.7-15.8 cents zone with above-average volume. The bounce is consistent with the recovery in market leader bitcoin (BTC), which has bounced to $107,000 from the overnight low of around $105,200.

The double bottom forms after a notable sell-off and is characterized by two bottoms at approximately the same level, separated by a brief recovery. An eventual move above the high logged during the interim recovery, as seen in DOGE's case, is said to confirm a bearish-to-bullish trend change.

While the intraday momentum has shifted bearish, the broader bearish lower highs pattern, representing a consistent downtrend since the second half of May, remains intact.

The daily price chart indicates that a convincing move above the lower high of 17 cents, established over the weekend, is required to invalidate the broader bearish setup.

Key AI insights

DOGE formed a clear double bottom pattern around the $0.157-$0.158 zone, with above-average volume, particularly during the 13:00-14:00 hours on July 1.The cryptocurrency experienced a steady climb culminating in a bullish close at $0.161, with increasing volume confirming buyer interest.In the last 60 minutes from July 2, 05:37 to 06:36, DOGE demonstrated a clear bullish trend, rising from $0.1605 to $0.1611, representing a 0.36% gain.Price action formed an ascending channel, with notable volume spikes at 06:06 and 06:07 (over 4.4M and 6.0M respectively), confirming strong buyer interest.After reaching a local high of $0.1611 at 06:14, DOGE experienced a brief pullback to $0.1606 at 06:27 before recovering to close the hour at $0.1611.