Dogecoin Shows Early Signs of Stabilization but Faces Major Trendline Test

Dogecoin is finally showing signs of stabilization after weeks of steady declines, yet it remains too early to call a full bullish reversal. Recent price action reflects an encouraging shift in momentum: buyers are gradually absorbing sell pressure, and DOGE is climbing off its recent lows. However, the cryptocurrency remains capped beneath a well-defined descending trendline that continues to dictate broader market direction. Until this barrier breaks, any rally remains limited by default.

One of the strongest technical signals developing is the structure forming around the $0.15–$0.16 support zone. Dogecoin has managed to hold this level without slipping into a deeper sell-off, which suggests sellers are losing strength. This stabilization hints at growing buyer interest, even if it’s still cautious. The RSI is also recovering from oversold territory and moving toward neutral, which often indicates a shift from panic-driven selling to early-stage accumulation. Although trading volume remains low, the fact that it is no longer setting new lows is an important prerequisite for a sustainable recovery attempt.

From this setup, a continued push toward the $0.18–$0.20 region appears realistic. This zone aligns with the 50-day EMA as well as the midrange of a previous price structure, making it a natural magnet for any upward continuation. Historically, DOGE has shown strong reactions when approaching this area, and the current rebound is positioned for another retest.

Despite these positives, expectations should remain measured. The descending trendline above has consistently rejected upward moves for weeks. Without a decisive breakout supported by strong volume, any rally is more likely to stall once it meets resistance. For now, the trend structure supports a short-term continuation move, but a true reversal will only be confirmed when Dogecoin breaks above the trendline with conviction. DOGE may climb toward $0.20, but bulls are still battling against the prevailing downtrend.