Is Selling Pressure Finally Fading?

Dogecoin is showing early signs of stabilization after months of steady downside pressure, with price hovering around the $0.13 area.

While short-term gains have emerged over the past 24 hours, Dogecoin continues to lag some major altcoins on a weekly basis, reflecting cautious sentiment rather than renewed speculation.

On the daily chart, the broader trend remains bearish following the sharp pullback from late-year highs near $0.25. However, recent price action has begun to compress into a narrower range, often interpreted as a sign that selling pressure is weakening rather than accelerating.

Daily indicators hint at fading downside momentum

Momentum signals are starting to shift away from outright bearish conditions. The daily RSI has climbed back into the mid-40s after spending time near oversold levels, suggesting selling momentum is easing without triggering overbought conditions. This positioning leaves room for further upside if buyers step in.

At the same time, the MACD histogram is flattening, with early signs that bearish momentum is losing control. While this does not yet confirm a trend reversal, it often precedes either consolidation or a short-term rebound.

Short-term charts point to a possible reversal setup

On lower timeframes, technical analysts are highlighting a completed inverse head-and-shoulders pattern on the 2-hour chart, forming around the $0.13 region. This structure is commonly viewed as a bullish reversal pattern when it appears after extended declines.

A sustained hold above the neckline could allow Dogecoin to test higher resistance levels near $0.14 and $0.15. Failure to maintain this structure, however, would likely return the focus to range-bound trading rather than a directional move.

Sequential signals add to cautious optimism

Adding to the constructive outlook, TD Sequential indicators have recently flashed buy signals on higher timeframes. These signals are often associated with trend exhaustion, hinting that sellers may be running out of momentum.

Historically, such setups tend to precede relief rallies or sideways consolidation rather than immediate continuation lower, though confirmation from volume and price follow-through is still needed.

Broader market conditions remain a key factor

Dogecoin’s near-term direction may also depend on overall crypto market sentiment. Bitcoin’s relative stability and renewed interest in risk assets could provide a supportive backdrop if capital rotation into altcoins resumes.

Still, risks remain elevated. The $0.12-$0.13 zone remains critical support, and a decisive breakdown below this range would invalidate the emerging bullish signals and reopen the downside scenario.

For now, Dogecoin sits at a technical crossroads. While the longer-term trend remains under pressure, improving momentum indicators and short-term reversal patterns suggest the downside may be losing control, setting the stage for a potential rebound if broader market conditions align.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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