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