• Dogecoin is trading above key support at $0.1631, holding within a narrow range amid minor recovery signs.
• MACD lines are gradually converging as histogram bars shrink, showing weakening downside pressure.
• Price faces near resistance at $0.1669, with current structure showing higher daily lows.

Dogecoin (DOGE) may be preparing for a shift in momentum following recent price stabilization and renewed buying pressure. After weeks of downward action, the price is attempting to form a base above key support. 

Currently priced at $0.1643, Dogecoin has registered a mild decline of 0.9% in the last 24 hours. However, the current consolidation near this zone has drawn attention, especially with the emergence of early technical indicators hinting at a potential reversal.

Technical Indicators Signal Waning Bearish Momentum in DOGE

The RSI is trading at 50.25 showing DOGE is in a neutral momentum with neither overbought or oversold effects.

The Moving Average Convergence Divergence (MACD) remains below the zero line, yet both the MACD line and signal line show gradual convergence. The histogram bars, while still red, have shrunk in size over the last few sessions. This development, paired with the recent price action, suggests that bearish strength may be weakening. The MACD’s slow upward curl marks the first such behavior in several weeks, occurring after Dogecoin briefly touched the $0.14 range.

Price Consolidates Near Support as Resistance Nears

The current support level stands at $0.1631. Dogecoin has hovered just above this mark, which previously acted as a demand zone during earlier corrections. On the upside, resistance lies at $0.1669. The price action on the daily chart now fits within this narrow range, indicating the market is awaiting a breakout. Notably, this setup follows a steep correction from levels above $0.22 observed in early June.

Volume Builds as Short-Term Trend Stabilizes

Trading volume and candle structure reflect renewed interest at this level. A closer examination of the price action reflects a series of higher daily lows over the last three days. The action represents a short-term stabilization phase, one that is often witnessed before a more meaningful directional thrust. Price has not yet closed below support on the daily chart, a move that might tempt short-term traders who watch breakout levels.