Dogecoin has rebounded from recent lows, but technical analysts agree the cryptocurrency faces a decisive test in the coming sessions. The mid-$0.15 range represents a make-or-break zone that will determine whether the current bounce develops into a sustained reversal or remains a temporary relief rally.
The meme coin currently trades at $0.1467 after successfully retesting key moving averages on the four-hour chart. Analysts emphasize that clearing $0.157 and establishing a new local high would confirm the end of a prolonged correction phase that has pressured the asset for months.
Technical Structure Points to $0.157 as Key Resistance
Kevin from Kev_Capital_TA outlined the technical requirements for confirmation of a trend reversal. Dogecoin has broken above important four-hour moving averages and successfully retested those levels. This pattern mirrors behavior seen across Bitcoin and multiple altcoins attempting to exit corrective phases.
The analyst noted that Dogecoin's corrective period ended precisely where projected. A break above $0.157 would complete the textbook pattern of breakout, retest, and new high. This sequence would provide concrete evidence that selling pressure has exhausted itself.
Dogecoin 4-hour chart, Source: X
— Kev_Capital_TA (@Kev_Capital_TA) May 13, 2024
Historical chart data shows Dogecoin repeatedly failed at declining moving average bands during its downtrend. Recent price action differs markedly from these earlier patterns. The cryptocurrency reclaimed key averages and held them on a pullback rather than collapsing immediately. This behavior suggests market structure may be transitioning from resistance-driven selling to support-driven buying.
Daily Chart Shows Bullish Engulfing Pattern
Cantonese Cat highlighted a significant development on the daily timeframe. The latest candle engulfs the previous five bearish candles, a pattern that typically signals growing buyer momentum. The session high reached $0.1508 before settling at $0.1486, bringing the price into direct contact with established resistance.
Dogecoin daily chart, Source: X
— Cantonese Cat (@cantonmeow) May 13, 2024
This engulfing formation demonstrates buyers can absorb available supply and push the price higher despite recent downward pressure. However, the analyst stressed that bulls must establish a new higher high to validate the pattern's implications fully.
BigCheds' daily analysis reveals why the mid-$0.15 area carries such significance. Dogecoin remains beneath substantial overhead resistance. The 34-day exponential moving average sits at $0.1828, while the 200-day simple moving average rests at $0.2212. Both indicators represent formidable obstacles beyond the immediate $0.157 level.
The Bollinger Band indicator provides additional context for understanding current price action. Dogecoin bounced sharply from the lower band near $0.11, drove through the middle band around $0.135, and tagged the upper band close to $0.16. Price then retraced to the basis line, held support, and now rotates back toward the upper boundary.
This technical sequence aligns with the retest pattern analysts consider essential for trend confirmation. The cryptocurrency must hold reclaimed short-term averages and push through $0.157 to complete the formation. A successful break would force price through the daily supply zone while expanding momentum in an upward direction.
Penetrating the upper Bollinger Band would add weight to the reversal thesis by demonstrating accelerating buying interest. The bands measure volatility and trend strength, making expansion above the upper envelope significant for momentum traders.