Dogecoin DOGE/USD fell 11% in Saturday’s 24-hour trading session, which Benzinga called Friday’s most likely scenario due to a downtrend on the crypto’s inside bar pattern.

The Shiba Inu-themed crypto fell below the important psychological support level at 5 cents on Saturday, and future price action may turn even gloomier.

Dogecoin is not alone in its bearish price action. Bitcoin BTC/USD and Ethereum ETH/USD were also down on Saturday, falling more than 13% and nearly 18% respectively at press time.

As Dogecoin fell below the 5 cent mark, the crypto is at least likely to rebound at this level over the next few days as Dogecoin develops a bullish divergence on the daily chart.

A bullish divergence occurs when a stock makes a series of lows over a period of time, while the Relative Strength Index (RSI) oscillator makes a series of highs. The divergence suggests that the bulls are regaining control and may mark an imminent reversal of a downtrend.

Divergences are best used when combined with other signals and patterns on a stock or crypto chart, as the existence of a divergence does not indicate when a possible reversal will occur.

Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.

The Dogecoin Chart: With Dogecoin below 5 cents, this indicates that the downtrend is still intact. Dogecoin’s most recent lower high was printed on June 15 at $0.063 and the most recent confirmed lower low formed at $0.049 the previous day, but bulls entered and bought the dip, forcing Dogecoin to close the session 24-hour trading above the 5 cent level.

• On July 13, Dogecoin’s RSI fell to the 19% level, but since that date, the crypto’s RSI has been making a series of higher lows. RSI higher lows indicate bullish momentum, which means that either Dogecoin will have to drop further to drop its RSI below 20%, or the crypto’s price will have to rebound to form a higher low.
• If Dogecoin closes the trading day near its daily low, the crypto will print a bearish Marubozu candlestick, which could indicate that lower prices will return in Sunday’s trading session. If the crypto is able to find buyers and close the trading session with a lower shadow, Dogecoin will print a hammer candlestick, which could indicate that a rebound is on the horizon.
• Dogecoin has resistance above $0.065 and $0.083 and support below at the 4 cent mark.

See also: Why Dogecoin is hammered again today