Dogecoin Recovery at Risk as Bullish Signal Fades

Dogecoin’s recent recovery hopes are fading fast as a key technical indicator nears invalidation. The anticipated mini-golden cross—a bullish crossover between the 50-day and 100-day exponential moving averages (EMAs)—is stalling on the daily chart. Instead of pushing higher, the 50 EMA is flattening out, failing to break above the 100 EMA. This hesitation signals potential weakness in DOGE’s uptrend and serves as a warning for long-term bullish investors.

Currently trading just above $0.17, Dogecoin is struggling to maintain crucial support. If the price breaks below the $0.16 mark, it could confirm a return to the bearish trend that has persisted since late March. This would likely trigger further losses and erode investor confidence.

Adding to the bearish sentiment is a sharp decline in trading volume, which has dropped significantly since peaking in May. Low volume indicates waning buyer interest and weak market participation—two critical elements needed for a sustainable bullish reversal.

The Relative Strength Index (RSI) is also flashing caution. Hovering near oversold territory without signs of bullish divergence, the RSI suggests limited accumulation and little appetite for a meaningful rebound. Without a strong catalyst, any short-term rallies are likely to be short-lived.

Dogecoin’s technical outlook remains fragile. Traders and investors should watch for a confirmed break of support or a reversal in momentum before considering bullish positions. Until then, the risk of a continued downtrend remains high.