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Dogecoin (DOGE) is currently trading below the $0.25 level after experiencing massive volatility and price swings in recent days. As the crypto market faces a broad correction, meme coins, including DOGE, have been some of the most affected assets, with bulls struggling to regain momentum. Related Reading Whales Bought 420 Million Cardano After Trump’s U.S. Strategic Crypto Reserve Announcement – Insights 1 day ago
Despite multiple attempts to push higher, DOGE has remained under pressure, failing to reclaim key resistance levels. Investors are closely watching whether bulls can regain control or if further downside is ahead. The uncertainty has left traders cautious, with many waiting for a strong signal of recovery before re-entering the market.
Crypto analyst, Ali Martinez, shared insights on X, revealing that Dogecoin may be gearing up for a rebound. According to his analysis, the TD Sequential indicator has flashed a buy signal on a high time frame, suggesting that DOGE could be nearing a potential reversal. If bulls step in at current levels and capitalize on this setup, DOGE could see a strong recovery in the coming days. Is Dogecoin Preparing For A Recovery Rally?
Dogecoin has been at its lowest since late 2024 as bullish sentiment fades, following a 60% decline from its multi-year high of $0.48. The correction has been brutal, with meme coins bleeding the most amid broader market weakness. DOGE now struggles to reclaim crucial liquidity levels, making it difficult to start a recovery rally.
Market participants are closely watching for a decisive move, as analysts and investors remain on the sidelines, waiting for confirmation of either a break above crucial supply or a breakdown below current demand levels. Until a clear trend is established, uncertainty dominates DOGE’s price action.
Despite the bearish outlook, Martinez’s insights suggest Dogecoin may be gearing up for a rebound. According to his analysis, the TD Sequential indicator has flashed a buy signal on the 4-day chart, which could indicate that selling exhaustion is near. Dogecoin TD Sequential Indicator Flashes a Buy Signal | Source: Ali Martinez on X
The TD Sequential is a well-regarded technical analysis tool that helps traders identify trend exhaustion and potential price reversals. On higher time frames, this indicator has historically been very effective, meaning this could present a major buying opportunity if DOGE follows its typical pattern. Related Reading 2.23 Million Chainlink Moved To Exchanges In Two Weeks – Selling Pressure Incoming? 1 day ago
As market sentiment remains mixed, traders are keeping a close eye on DOGE’s next major move. If buyers step in and confirm the TD Sequential’s buy signal, Dogecoin could see a strong recovery in the coming days. However, failure to reclaim key levels may lead to further downside pressure, delaying any meaningful rebound. DOGE Holding Crucial Demand Dogecoin is currently trading at $0.209 after a period of volatile price swings, briefly dipping below $0.20 before recovering above $0.22. The market remains uncertain, with bulls attempting to regain control after weeks of selling pressure. DOGE trading below 200-day MA & EMA | Source: DOGEUSDT chart on TradingView
For DOGE to confirm a strong recovery, bulls must reclaim the $0.25 level and establish it as a solid support zone. This would open the door for a push above the 200-day Moving Average (MA) and Exponential Moving Average (EMA), key resistance levels that could trigger a breakout to higher price targets. If DOGE successfully clears these technical barriers, momentum could shift in favor of buyers, leading to a more sustained uptrend. Related Reading Ethereum Breaks Below Parallel Channel – Is ETH Collapsing To $1,250? 2 days ago
However, losing the $0.20 level again would be a bearish signal as it would indicate a lack of strong demand at current prices. If this scenario plays out, DOGE could drop further into lower demand levels around $0.14, a price zone that previously acted as a major accumulation area.
Featured image from Dall-E, chart from TradingView