Technical Rebound or Genuine Trend Reversal?
After weeks of correction, Dogecoin appears to be regaining some color. At the time of writing, the memecoin is trading around $0.096, posting a gain of approximately 6% over the last 24 hours. This movement comes as the asset has been evolving for several months within a descending regression channel, a typically bearish structure that compresses the price.
However, this rebound should not be interpreted too quickly as an immediate bull run. For now, it’s a technical reaction on structural support. The market is breathing, but the underlying trend remains fragile as long as certain key levels are not reclaimed. Traders are anxiously watching the $0.080 zone, a true line of defense for the bulls, which has already stopped several sell-offs in the past.
It’s behind the scenes where things become interesting. Order flow analysis shows that the Spot Taker CVD (Cumulative Volume Delta) remains dominated by buyers. Concretely, this means that demand is absorbing available supply without causing the price to explode: this is the very definition of an accumulation phase.
Unlike panic movements where CVD plunges, here, buyers are calmly intervening on dips (buy the dip). Additionally, a TD Sequential buy signal appeared on the daily chart near $0.095. This type of signal often suggests an exhaustion of selling pressure and could signal a pause in the bearish trend, or even a tactical short-term reversal.
Key Levels to Watch to Avoid the Crash
Despite these positive signals, Dogecoin is not yet out of the woods. To validate a sustainable recovery and hope for a breakout, the price must imperatively break the major resistance at $0.117. This level has systematically rejected all upward attempts since November. As long as DOGE remains below this threshold, the risk of a new leg down persists.
If the bulls manage to break through this obstacle, the next target sits around $0.153, aligned with the top of the descending channel. Conversely, if the current support gives way under seller pressure, a return to the critical zone of $0.080 seems inevitable, potentially offering one last entry opportunity before a more severe capitulation.
The situation is tense but hope is rekindling. With indicators signaling accumulation and seller exhaustion, Dogecoin could be preparing an explosive move. The question remains whether volume will be sufficient to transform this technical rebound into a genuine bullish trend.
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