Will Dogecoin Maintain Its Recovery Above $0.135?

This article examines Dogecoin's recent price action, discussing whether it can sustain its recovery above the critical level of $0.135. An analysis of technical indicators, support and resistance levels, and market trends provides insights into DOGE's potential movements.

Key Takeaways

Dogecoin recently reached an intraday high of approximately $0.1377 and remains consolidated in a narrow range between $0.125 and $0.135.
The cryptocurrency has been trading below its main moving averages, indicating a weak overall trend.
Recent signs suggest that selling pressure is diminishing, with indicators hinting at a potential recovery phase.
Key support levels are identified between $0.130 and $0.125, which DOGE must maintain to avoid further declines.

Will Dogecoin Maintain Its Recovery Above $0.135?

Current Market Overview

According to TradingView data, Dogecoin (DOGE) recently established an intraday peak near $0.1377, while its downside appears to be limited above $0.125. This price behavior suggests that traders are hesitating rather than aggressively selling, a common sign during the initial stages of forming a price base.

Support and Resistance Analysis

From a technical standpoint, Dogecoin has been trading below its significant moving averages for an extended period, suggesting that the overall trend remains weak. On the daily chart, the 50-day moving average is approximately $0.145, and the 100-day moving average is around $0.165. Both are well above the current price and serve as resistance. However, the price has started to stabilize in the $0.125–$0.135 range, indicating that selling pressure might be decreasing.

Dogecoin Technical Indicators
(Source: TradingView)

The Relative Strength Index (RSI) on the daily chart has risen to around 53, remaining above the neutral level of 50 while still below the overbought territory. This movement suggests that the selling pressure is easing, allowing buyers to re-enter the market. Instead of demonstrating weakness, DOGE may be experiencing a mild recovery phase following its recent downturn. In many situations, such an RSI movement after a prolonged downtrend indicates early stabilization or a short-term rebound.

Meanwhile, the MACD indicator is still below the neutral zone, which indicates a weaker overall trend. However, the MACD histogram has turned positive, and the difference between the MACD line and the signal line is narrowing. This development suggests that the downside momentum is fading, although a definitive bullish crossover has yet to occur.

Regarding trend strength, the Average Directional Index (ADX) remains low, indicating that Dogecoin is not exhibiting a strong directional trend at this moment. This aligns with the current price action, where DOGE is fluctuating within a narrow range on the daily chart, reflecting a phase of consolidation instead of significant price swings.

Future Trend Outlook

Concerning key price levels, Dogecoin is currently supported between the $0.130 and $0.125 range. If it can maintain above this threshold, it may gradually approach the $0.140–$0.145 resistance zone, which was previously a breakdown level. A decisive move above this area could set DOGE up to test the $0.15 mark in the near term. On the flip side, slipping below $0.125 could lead to additional weakness, with the next support level around $0.11.

In conclusion, Dogecoin is in a phase of downward consolidation following an extended decline. While the general trend remains weak, recent price movements and technical indicators imply that the market is beginning to stabilize, as selling pressure appears to be easing at vital support levels.