Dogecoin Signals Potential Rebound as Market Sentiment Shifts

Dogecoin (DOGE), the popular meme-based cryptocurrency, is flashing signs of a potential recovery following a sharp sell-off. According to CoinMarketCap data, DOGE's Bollinger Bands are tightening—an indicator that bearish volatility is waning. Historically, this pattern signals a possible breakout, which could help DOGE reverse its recent downtrend.

At the time of writing, Dogecoin is trading at $0.1395, down 14.56% over the last 24 hours. The price briefly touched a low of $0.1316 before showing early signs of stabilization, aligning with the technical setup suggested by the Bollinger Bands. Over the past week, DOGE has dropped by 14.99%, dipping below a critical support level at $0.15, which sparked widespread selling and uncertainty among investors.

However, renewed investor interest is fueling hopes for a turnaround. Trading volume has surged by 358.25%, hitting $2.67 billion—a strong sign of growing market engagement. This spike in volume could act as a catalyst for a bullish reversal toward the $0.17 resistance level, as buyers regain control.

Adding to the optimism, Dogecoin cofounder Billy Markus recently commented on the cyclical nature of market trends, urging investors to remain patient during downturns. His remarks appear to have contributed to the improving sentiment around DOGE.

Although Dogecoin remains below the key $0.20 mark, it is not currently in an overbought zone. This technical condition supports the idea that DOGE may be poised for a rebound, especially as market sentiment begins to realign. Investors are now watching closely for a decisive move that could confirm the start of a new upward trend.