Potential Dogecoin Reversal: Price Signals a Double Bottom at $0.12

The price of Dogecoin is showing early indications of a double bottom formation near the critical support level of $0.12. If confirmed, this could signal the beginning of a bullish market rotation.

Key Takeaways

Dogecoin is showing early signs of forming a double bottom near the $0.12 support level.
Historically, $0.12 has acted as a strong support zone.
A confirmed reversal will require reclaiming key resistance levels, including the Point of Control.
Buyer behavior and trading volume are crucial in determining the success of this potential reversal.

Dogecoin price double bottom suggest reversal of trend.

Dogecoin has stabilized around the $0.12 support, an area historically known for its strength. Technical analysts are noting the early signs of a potential bullish reversal. However, this pattern requires confirmation through price action and volume before solid trends can be established.

Analysis of Dogecoin’s Price Movement

Dogecoin price signals potential double bottom at $0.12, reversal forming? - 1
DOGEUSDT (4H) Chart, Source: TradingView

The potential double bottom formation in Dogecoin is occurring at a significant technical level. The initial reaction to the $0.12 mark established strong buying interest, while a subsequent test of this price level indicated that sellers could not drive the price lower. This failure to break previous support usually signals seller fatigue, which often precedes market reversals.

In terms of market structure, Dogecoin has been experiencing a downtrend with consistent lower highs and lower lows. Recognizing double bottoms in this context is particularly important, as they can mark the shift from bearish dominance to a more balanced or bullish phase.

However, it’s essential to remember that a double bottom is only validated when critical resistance levels are reclaimed. Currently, Dogecoin is trading below the Value Area Low, meaning it remains under fair value. For a structural change to take place, DOGE needs to regain this level on a closing basis to signal a return to value.

The Point of Control (POC) is the first significant test for bulls. This level, representing the highest trading volume within the recent range, often attracts price during rotational movements. Successfully reclaiming the POC would significantly enhance the chances of further movement toward the $0.15 resistance level, which marks the upper boundary of the broader trading range.

Volume trends will be pivotal in determining if this potential reversal can evolve. Reversal patterns that do not show an increase in bullish volume often fail, leading to more consolidation or renewed declines. On the flip side, increasing volume during attempts to reclaim levels indicates genuine demand in the market. This was also reinforced by AI-driven analyses from platforms like DeepSeek AI, which presented price projections for various cryptocurrencies, including Dogecoin.

Another vital element is the duration that Dogecoin remains above the $0.12 support. The longer it can hold above this level without substantial selling, the stronger the case for a double bottom formation. Typically, failed double bottoms are characterized by the price rapidly losing support after a brief uptick, which has not occurred in this instance.

From a price-action perspective, the current behavior suggests cautious optimism. Buyers are defending the $0.12 mark, while sellers seem less aggressive compared to previous declines. Although this shift does not by itself confirm a trend reversal, it does point to decreasing downside momentum.

Future Price Action Expectations

As long as Dogecoin stays above the $0.12 support level, the possibility of a bullish reversal remains. A confirmed double bottom could pave the way for movement toward the Point of Control and potentially to $0.15.

Nevertheless, without adequate volume confirmation and a clear reclaim of significant structural levels, the pattern remains in development rather than finalized.