Dogecoin's trend has entered a tense moment. After experiencing a drop of over 5% within 24 hours, DOGE is currently trading near the key support level just below $0.14, where both bulls and bears are engaged in a fierce battle.
This fluctuation is closely related to the turbulence in the cryptocurrency market triggered by yesterday's Federal Reserve FOMC meeting. The current trading volume remains high, with over 8% of the total circulating supply concentrated in the $0.13 area, making this price level a crucial dividing line between bulls and bears. If the bulls lose this level, it could trigger a deeper pullback; conversely, if market sentiment reverses, Dogecoin could stage a remarkable comeback.
🔻 Key support is being tested
From the 12-hour chart observation, Dogecoin is once again approaching the critical level of $0.13. This position has successfully supported three pullbacks in the past few weeks, making it technically significant. If the price can find support here and break through the dynamic trendline resistance, the likelihood of testing the $0.195 control point will significantly increase.
📊 Technical indicators are waiting for signal confirmation
Currently, the Relative Strength Index (RSI) is hovering around 40 and still needs to break through its 14-period moving average to confirm a shift in momentum. Ideally, the RSI standing above the 50 midline would be an important technical signal for the return of bullish strength.
🔺 A potential bullish structure is brewing
It is worth noting that some analysts have pointed out that Dogecoin may currently be forming a classic bullish reversal pattern—a descending wedge. The price is gradually converging downwards within this structure and vaguely showing signs of a rounded bottom. If the market can break above the wedge's upper edge with volume, it may initiate a technical rebound.
In summary, Dogecoin is at a critical crossroads: the outcome of defending $0.13 will directly impact its short to medium-term trajectory. The market is waiting for a clear signal to determine whether to seek a bottom downwards or to initiate an unexpected upward rally.
Market conditions change rapidly; specific entry and exit points should be determined in real-time. Just follow the trend if it breaks! No matter how high your confidence is, please strictly execute stop-loss and take-profit strategies! That's all for today! Follow me, and you won't get lost!
