u.today
The chart shows that Dogecoin is running out of space. Since early October, the price has been steadily declining, with every attempt at a rally being thwarted by the descending trendline that currently serves as $DOGE's main barrier. However, the structure is becoming more rigid. The asset is building a base directly beneath a trendline that has rejected it for almost two months; sellers are losing steam and volatility is contracting.
Dogecoin's bullish sequence
The only true window for a reversal on $DOGE is this one. Even though the overall trend is still negative, the price is currently hovering around $0.14, clearly forming a sequence of higher lows within the micro-range. Instead of showing fresh strength, the RSI is stabilizing in the low 40s, indicating seller fatigue.
The volume has significantly decreased, which is a classic indication of trend fatigue because strong downtrends seldom continue on declining volume. Although it does not ensure a reversal on its own, it does indicate that sellers are no longer in complete control.
The trendline that is descending is the true focal point. $DOGE has tested it several times, and the downside follow-through decreases with each touch. This is usually the last phase prior to a breakout, when investors misinterpret the seeming stillness as weakness as pressure increases.
Next key level
The next crucial level will be the 50-day MA, which is located at $0.16, if $DOGE broke above the trendline. Bulls have a clear advantage in momentum if they take that into account. The market will probably push $DOGE back toward November lows if it is unable to break the declining trendline at this point, which is the worst-case scenario. Building will not go on forever.
However, the current setup indicates the opposite: the market is undervaluing the possibility of a breakout, which is far more likely than most people believe. Clean technical setups like this are rare for $DOGE. This is the only real opportunity for bulls to seek a reversal, and the chart indicates that it is happening more quickly than most investors anticipate.