Dogecoin (DOGE) is exhibiting signs of potential stabilization after a turbulent trading session, but key technical indicators are flashing warnings that could attract bearish traders. The popular memecoin recovered impressively from an intraday low of $0.164, staging a 4.7% bounce to close near $0.171. This resilience occurred amidst a broader market sell-off, suggesting that some institutional or large-scale buyers may be viewing these lower prices as an accumulation opportunity. However, the price action remains trapped below critical resistance levels, painting a complex picture for traders navigating the current volatility.

Market Weakness Hits Altcoins, But Sentiment Remains Strong

The recent downturn in the crypto market was largely triggered by escalating geopolitical tensions, which sparked a significant risk-off event across all asset classes. This market-wide correction led to mass liquidations and pushed DOGE down sharply during the 13:00 UTC hour on Wednesday, where it hit its low of $0.164 on a massive volume spike of 591 million units. This broad pressure was not isolated; other major altcoins like Solana (SOL) and Cardano (ADA) also experienced significant declines. Data shows SOLUSDT fell below the $151 mark, while ADAUSDT dropped to nearly $0.58, indicating a correlated market response to macroeconomic and geopolitical headwinds. Compounding these issues is the U.S. Federal Reserve's ongoing restrictive monetary policy, which has historically dampened enthusiasm for speculative assets like Dogecoin. Despite these challenges, on-chain sentiment remains surprisingly robust. According to data from LunarCrush, social mentions related to DOGE show an 86% positive tone, signaling strong community conviction that could provide a floor for the price.

Technical Levels and Patterns to Watch

From a technical standpoint, Dogecoin's chart is forming a descending triangle, a pattern that is traditionally considered bearish. This formation is characterized by a flat support line and a descending upper trendline, suggesting that sellers are becoming progressively more aggressive. The primary volume-based support has been firmly established at the $0.164 level, which bulls successfully defended. Following the bounce, DOGE has entered a tight consolidation phase, trading mostly between $0.1696 and $0.171. Small but consistent volume bursts within this range, particularly a 3.4 million volume spike between 02:00 and 02:02 UTC, hint at quiet accumulation. The Relative Strength Index (RSI) is currently at 33.29, hovering just above the oversold threshold of 30. While this can signal that a bounce is due, it can also be interpreted by bearish traders as a sign of persistent weakness, making it a prime level for placing short bets with a clear invalidation point.

Defining Key Support and Resistance for DOGE

For traders, the path forward for DOGE is defined by several critical price levels. Immediate resistance is found near $0.172. A decisive break above the $0.1750 level is required to invalidate the immediate bearish pressure and open the door for a test of the next significant resistance zone at $0.1820. On the other hand, a failure to reclaim these higher levels could see the price drift back down to retest the consolidation floor at $0.1696. If that support breaks, a more significant downturn toward the crucial $0.1640 low is likely. In a severe risk-off scenario, a breach of this level could trigger further liquidations and potentially push DOGE toward the $0.150 psychological support. The near-term outlook may hinge on broader market sentiment and potential catalysts, such as progress on a spot DOGE ETF or increased adoption on networks like Coinbase's Base, where wrapped DOGE continues to gain traction.