Dogecoin (DOGE) Price Rallies 11% as Volume Patterns Suggest Weakening Selling Pressure

TLDR

• Dogecoin trades at approximately $0.132, showing a 1.9% increase in the last 24 hours
• The cryptocurrency recently broke below key support at $0.129 with elevated trading volume confirming the breakdown
• Technical analysts identify a bullish divergence on the 4-hour RSI chart, with price making lower lows while RSI forms higher lows
• The $0.1280 to $0.1300 range has become a critical zone, with former support now acting as resistance
• Volume patterns suggest selling pressure may be weakening, though DOGE remains in a vulnerable position

Dogecoin has experienced turbulent price action in recent trading sessions. The popular meme cryptocurrency now trades at around $0.132 according to CoinMarketCap data.

The token recently dropped below a key support level near $0.129. This breakdown was confirmed by elevated trading volume. The move marked a clear exit from the prior consolidation structure.

DOGE slipped roughly 0.3% over a 24-hour period ending December 22. Trading ranged from $0.1309 to $0.1305. Intraday volatility reached approximately 4% during this timeframe.

The cryptocurrency dropped sharply from higher levels. This triggered widespread liquidations among short-term holders. Price briefly fell below $0.1240 in what appeared to be a liquidity sweep.

A relatively swift recovery followed this downward probe. Price action since that low has formed a pattern of higher lows around the $0.1260 mark. This shift in behavior represents a change from the previous downtrend structure.

Critical Price Zones Define Near-Term Direction

The $0.1280 to $0.1300 range has emerged as a pivotal zone. This area previously acted as resistance and capped upward attempts. A successful reclaim of this band could flip short-term market structure.

Such a move would open pathways toward $0.1350 and potentially $0.1400. Failure to reclaim this zone carries risks. Rejection at current levels could send DOGE back toward $0.1200 support.

The most decisive move came shortly after 02:00 UTC on December 22. Price slid from the $0.132 area toward $0.130 on a burst of selling. This move flipped former support into resistance.

Early strength during the session carried DOGE briefly higher toward $0.134. Sellers emerged at this level. This reinforced $0.134 as near-term resistance.

Technical Indicators Show Divergence Pattern

Crypto analyst Trader Tardigrade identified a bullish divergence developing on the 4-hour Relative Strength Index. While price continued its descent from above $0.1400, the RSI began forming higher lows.

This divergence pattern frequently appears near market inflection points. It often occurs after extended downward movements. Volume patterns accompanying this divergence provide additional context.

Selling waves remain present but have diminished in size and intensity. The reduction suggests distribution pressure is fading. This volume behavior often precedes directional changes.

A breakout above the recent swing high near $0.1320 would serve as technical confirmation. Such a move could facilitate rapid advancement toward the $0.1450 to $0.1500 range. A breakdown below the divergence low would negate the setup and potentially expose the $0.1180 level.

On shorter timeframes, DOGE now trades below its immediate moving averages. Momentum indicators lean lower rather than showing divergence. Attempts to rebound toward $0.132 have met selling interest.

Trading activity picked up during the session. Aggregate volume rose sharply, with turnover spiking well above recent averages. The breakdown occurred alongside a sharp increase in volume, suggesting active participation.

The $0.132 to $0.134 area now acts as overhead resistance following the breakdown. The $0.129 level is the first support zone to watch on the downside. A sustained loss could open the door to further weakness.

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