Over the past week, the Dogecoin price has shown a clear downtrend, starting around $0.147 and gradually declining to $0.1366 at the time of writing.
DOGE’s price action over the past 24 hours (Source:CoinCodex)
The early part of the week saw minor volatility with brief upward spikes, but selling pressure dominated from January 8 onwards. By the end of the period, the price stabilized at lower levels, indicating sustained bearish sentiment.
Dogecoin Price Eyes Uptrend After Breaking Above 50-Day Moving Average
The 1-day chart shows Dogecoin trading within a descending channel, characterized by lower highs and lower lows, signaling a prolonged downtrend. Recently, the price has moved above the 50-day moving average (MA 50), which often acts as a dynamic resistance in downtrends.
This breakout above the MA 50 suggests a potential reversal in momentum, indicating that sellers are losing control and buyers may be stepping in. The support zone around $0.12–$0.13 has held firm, reinforcing the base for a possible upward move.
Source: X
Analyst Carter highlights several upside targets as Dogecoin attempts to climb toward the resistance zone. Key levels to watch include $0.153, $0.182, $0.206, $0.240, and $0.280, which coincide with historical resistance points and areas of high trading volume. If the breakout sustains, these targets represent potential profit-taking points for traders. The chart also suggests a sell opportunity near $0.28, marking a strategic exit as Dogecoin approaches the upper boundary of the resistance zone.
Dogecoin Shows Early Signs of Trend Reversal
Meanwhile, Cantonese Cat, an analyst on X, suggests that the Dogecoin daily chart shows a clear shift in trend. For months, the price was consistently hugging the lower half of the Bollinger Bands, signaling persistent bearish pressure and weak buying interest. The moving average acted as resistance during this downtrend, and price action remained mostly below it, confirming the dominance of sellers. This prolonged period of low momentum suggested the market was oversold but lacked the catalyst for a sustained reversal.
Source: X
Recently, however, Dogecoin has broken this pattern, moving above the midline of the Bollinger Bands with increased upward momentum. This shift indicates a potential trend reversal, as the price now exhibits stronger bullish behavior and respect for support levels rather than consistently pressing lower. Traders may interpret this change as a sign that the downtrend has lost strength, and the market could be entering a consolidation or early-stage uptrend phase, signaling renewed interest from buyers.
Source: https://coinpaper.com/13696/dogecoin-price-shows-early-signs-of-bullish-reversal-after-prolonged-downtrend
