Dogecoin (DOGE) has experienced a sharp 20% price decline from recent highs, currently trading around $0.169. Despite this, technical analysis reveals a bullish divergence and key support at $0.167 that suggest a potential rebound. Analysts highlight a slowdown in downside momentum, supported by a drop in trading volume over 15% during the decline, indicative of weakening selling pressure.
On the other hand, Dogecoin's price remains below its 200-day Exponential Moving Average (EMA), pointing to a broader bearish trend. This is compounded by the emergence of a "death cross" pattern on the weekly chart, where the 23-day moving average crosses below the 50-week moving average—a classical signal of medium-term weakness indicating possible further downward pressure.
Social media and expert sentiment have become increasingly bullish, with price targets around $0.60 being discussed among analysts, suggesting optimism for a significant rally if key support levels hold and buying volume returns. On-chain data also shows significant DOGE outflows from exchanges totaling approximately $31.4 million, implying accumulation by long-term holders and potential for upward price momentum.
Nonetheless, critical support at $0.137, aligned with the 200-day moving average on the weekly timeframe, remains a decisive level to watch. A breakdown below this could lead to faster losses, possibly revisiting price lows from early 2023 near $0.13. Conversely, maintaining above this zone could trigger short-term relief rallies.