Technical analysis indicates potential for a short-term Dogecoin (DOGE) rebound sparked by positive on-chain signals and chart patterns. A TD Sequential buy signal appearing on DOGE’s 4-hour chart suggests recent downward momentum may be exhausting, potentially leading to a price reversal.
Chart analysis shows DOGE is currently supported by a rising trendline originating near $0.118. The crucial resistance level for initiating a significant upward move is positioned at $0.125. A sustained breakout above this threshold could pave the way for further upside momentum, with potential technical targets near $0.135 and $0.15.
Broader market caution prevails ahead of the next U.S. Federal Reserve policy update, contributing to lower trading volumes. However, periods of accumulation often seen during such phases may provide underlying support for the anticipated rebound.
Adding to the neutral-to-bullish perspective, DOGE continues to trade above both its 50-day and 100-day moving averages. This positioning supports the case for potential recovery while traders watch the $0.125 resistance closely for confirmation.