Dogecoin Stabilizes Near $0.1637 After 1.7% Gain

Dogecoin has been trading within a narrow range between $0.156 and $0.165 over the past five days, showing early signs of stabilization after a significant correction earlier this month. The meme coin has begun to regain ground after dropping below the $0.17 price barrier, which is a crucial level according to technical analysis. This technical backdrop suggests a potential price move to $0.21.

Dogecoin’s 3-day candlestick timeframe chart indicates that the meme coin is currently trading just above an ascending trendline that has acted as a key support level across multiple correction cycles since late 2023. The formation of less volatile candlesticks and higher lows just above the 0.5 Fibonacci retracement level around $0.165 suggests a possible bounce move from here.

Crypto analyst Ali Martinez highlighted a bullish signal on the same 3-day candlestick timeframe. According to Martinez, Dogecoin has triggered a buy signal on the 3-day TD Sequential indicator, a tool that identifies trend exhaustion and possible reversals. This indicator has been useful in predicting buy and sell zones during this cycle. However, the bullish outlook depends on Dogecoin reclaiming the $0.17 price level, which is now acting as resistance. A breakout above this level could allow Dogecoin to rebound to $0.21, coinciding with the 0.618 Fibonacci extension from Dogecoin’s October 2023 low.

For Dogecoin to confirm a return to $0.21, market participation must increase significantly. The meme coin’s trading volume has been notably low over the past few days, with a 24-hour trading volume of just $400 million, a 36.7% decrease from the previous day. This level of activity is significantly below Dogecoin’s usual trading volume during periods of upward momentum. Such a slowdown in volume suggests that, despite the bullish technical signal from the TD Sequential indicator, the necessary follow-through from buyers is yet to be confirmed.

At the time of writing, Dogecoin is trading at $0.1637, up by 1.7% in the past 24 hours. Until volume picks up, Dogecoin may continue to consolidate or even drift sideways, regardless of the bullish indicators. Unless there’s strong interest and stronger inflows, the breakout setup could fizzle out or result in another rejection at $0.17.