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Dogecoin is likely to stabilize at current price levels, and as the RSI indicates, things may finally be looking up. Everyone is wondering whether this stability indicates the end of the downward trend or whether there are more declines on the horizon. The truth of that Doug It is currently trading below the 50 EMA, which is located at around $0.36, indicating that the asset is having difficulty regaining its uptrend. batch.
There is not much selling pressure as the Relative Strength Index (RSI) is still trading near 42 despite the recent decline. But it is important to remember that the RSI has not yet entered the oversold territory, so further declines may be possible before a potential recovery occurs. Earlier in December, the price pattern broke out of its ascending channel and is now showing a bearish structure.
Because of this collapse, Doug It is now approaching the 100 EMA, which is around $0.28 and could act as a crucial support level if there are further declines. If the price breaks this barrier, the 200 EMA, which is close to $0.22 and would signal a major trend reversal if reached, will be the next important support to watch.
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To the upside, DOGE needs to break above the 50 EMA at $0.36 in order to revive optimism. If successful, it may target the upper resistance located between $0.38 and $0.40, which has historically served as strong resistance in previous bullish attempts. Doug There is no oversold or overbought zone, according to the Relative Strength Index, which currently indicates a neutral situation.
This corresponds to the market's current sideways movement, indicating that it is waiting for a clear signal indicating the next important price direction. The RSI and price action around the 100 EMA are important indicators that traders should monitor. The DOGE may be poised for a recovery if it rebounds from this level, but another round of selling pressure may be unleashed if it fails to stay above the important support level.
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