It is pushing Dogecoin towards $0.17 as the first signs of a rebound are appearing due to strong support at $0.16, and it suggests the possibility of a bullish rush in the future.
Dogecoin (DOGE) is indicating a possible recovery because it reached major support at about $0.16.
The price of the cryptocurrency has gained a new area of critical buying point in this support zone after an evident downward trend characterized by low highs on a recent high of about 0.183.
According to market watchers, a full bullish reversal is not yet final unless DOGE makes a decisive move above the range of $0.166-0.168.
Source – X
Early Technical Patterns Offer Hope
The on-chain and price data indicate that the bearish momentum is weakening. Repeating the price-RSI pattern on the daily chart indicates that the local bottoms coincide with the RSI trendline break.
This trend had already resulted in robust rallies, observed in mid-2024. The situation is now similar, with RSI pressure on DOGE with respect to a falling trendline, which reflects a weakening selling power and a potential change in momentum.
The narrowing at around the existing demand level indicates that buyers are gaining ground, and a wick falling just beneath 0.16 indicates a liquidity grab, which is usually the precursor of an upward price movement.
However, it would be important to ensure that a move is maintained above $0.166 to ascertain this bullish bounce.
Liquidity Gaps and Structural Support.
Good structural backing is between 0.07 and 0.12, with more than 28 billion DOGEs already purchased to form a firm base.
Most importantly, above this, there is a low-resistance gap that could allow price movements to move fast, which could hasten the rise of DOGE to higher clusters of price between $0.16 and $0.24.
Traders closely observe this peculiar convergence of areas of historical accumulation and areas of low resistance.
In case DOGE continues to rise above $0.16, it may gain traction to $0.17 and higher to become a target of speculation.
Broader Market Context
Although optimistic in the near-term, Dogecoin is still in a bigger downward trend, since it has yet to reject the previous high at nearly $0.183.
Analysts point out that a longer-term reversal can only be confirmed by a sustained breakout above the immediate resistance area. In the meantime, the general liquidity and market sentiment affect the price dynamics.
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