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Dogecoin is most likely stabilizing at current price levels, and as the RSI indicates, things might finally be looking up. Everyone is wondering if this stabilization marks the end of its downward trend or if further declines are on the horizon. The fact that DOGE currently trading below its 50 EMA, which sits at around $0.36, indicates that the asset is struggling to regain its bullish level. momentum.
There is not much selling pressure as the RSI (Relative Strength Index) is still trading near 42 despite the recent decline. But it is important to remember that the RSI has not yet entered oversold territory, so further declines could be possible before a possible recovery. Earlier in December, the price trend broke out of its ascending channel and is now showing a descending structure.
Due to this failure, DOGE is now closer to its 100 EMA, which sits at around $0.28 and can serve as a crucial support level in case of further declines. If price breaks this barrier, the 200 EMA, which is near $0.22 and would indicate a significant trend reversal if reached, would be the next important support to watch.
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On the upside, DOGE needs to cross the 50 EMA at $0.36 in order to revive optimism. If successful, it could target the upper resistance between $0.38 and $0.40, which has historically served as strong resistance during its previous rally attempts. DOGE is neither oversold nor overbought, according to the RSI, which currently indicates a neutral position.
This is consistent with the market’s current sideways movement, suggesting that it is awaiting a clear signal that will indicate the next significant price direction. The RSI and price action around the 100 EMA are important indicators for traders to watch. DOGE could be gearing up for a rally if it rebounds from this level, but another round of selling pressure could be triggered if it fails to hold above important support.