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Dogecoin is most likely stabilizing at the current price levels, and as the RSI indicates, things may finally improve. Everybody is wondering if this stabilization signals the end of its downward trend or if more drops are on the horizon. The fact that DOGE is currently trading below its 50 EMA, which is located at about $0.36, indicates that the asset is having difficulty regaining its bullish momentum.
There is not much selling pressure as the RSI (Relative Strength Index) is still trading close to 42 despite the recent decline. But it is important to remember that the RSI has not yet entered oversold territory, so more declines may be possible before a possible recovery. Earlier in December, the price pattern broke out of its ascending channel and now displays a descending structure.
Due to this breakdown, DOGE is now closer to its 100 EMA, which is at about $0.28 and may serve as a crucial support level if there are any more declines. If the price breaks through this barrier, the 200 EMA, which is close to $0.22 and would indicate a significant trend reversal if it were reached, would be the next important support to keep an eye on.
For the upside, DOGE needs to break through the 50 EMA at $0.36 in order to rekindle optimism. If it is successful, it may target the upper resistance located between $0.38 and $0.40, which has historically served as strong resistance in its previous rally attempts. DOGE is neither oversold or overbought, according to the RSI, which currently indicates a neutral position.
This is consistent with the market's current sideways movement, which suggests that it is awaiting a clear signal that will indicate the next significant price direction. The RSI and the price movement around the 100 EMA are important indicators for traders to monitor. DOGE may be preparing for a recovery if it bounces from this level, but another round of selling pressure may be triggered if it fails to hold above important support.