Market watcher Trader Tardigrade noted that Dogecoin is still holding above its daily descending trendline, though buying strength is fading. The price has tested this trendline six times in a row over recent sessions, trying but failing to push lower.
The descending line once acted as a strong barrier during the earlier downtrend. Sellers repeatedly pushed the price away whenever bullish attempts approached the slope. This pattern created a clear bearish structure where lower highs dominated the market.
Source: X
A strong bullish candle pushed the price above the trend line, indicating weakening selling pressure. The price later tested the broken line, which appears to be a level of support, as higher lows were formed.
However, the breakout is not strong since the volume did not surge, and without a new buying force, the market is likely to remain range-bound.
Also Read: Massive Dogecoin (DOGE) Upside Brewing: 10x Potential Ahead
Weekly Structure Remains Bearish Despite Local Strength
Analysis of the chart on TradingView indicates that the overall trend is still negative. The coin is still stuck below the major moving averages. This indicates that there is overall selling pressure.
The price is currently stuck around the psychological level of $0.09 to $0.10. Previous attempts to move back to $0.17 to $0.18 were unsuccessful, and this area has become a resistance level.
The EMA lines of 20, 50, 100, and 200 weeks are all trending downwards. This is normally an indication that sellers are driving the price during rallies. The region of $0.14 to $0.17 is a challenging resistance level due to the presence of key EMA lines.
Source: TradingView
The RSI value is in the mid-30s on the weekly chart, which is close to the oversold levels but not highly exhausted. In the past, such values have sometimes experienced small bounce-ups, but a major reversal would require more bullish indicators.
What Comes Next for Dogecoin Price
The chart indicates a slowing phase. When the price remains tight around the support level following a breakout, the anticipation for a larger move begins to build. The first level of support lies in the range of $0.085-$0.09.
A close below this region may aim for $0.06-$0.07, which was previously a region where more purchases took place. On the other hand, $0.12 is closely observed as a small indication of revival. However, a close above $0.15-$0.17 is required to alter the entire market sentiment.
Also Read: Dogecoin Attempts Reversal as Technical Indicators Signal Potential $0.25 Rally
