• Dogecoin tests $0.16 support while aiming to break $0.166–$0.168 resistance for trend reversal.
• Analysts note Bearish Reversal signals on the daily chart, with lower candle closes and higher RSI lows.
• A successful breakout above $0.168 could trigger a new upward trend; failure may continue downward pressure.

Dogecoin (DOGE) is showing signs of possibly reversing from the downtrend it experienced. Experts are noting the formation of a “Bullish Divergence” in DOGE on the chart, indicating, possibly, the reversal of trends. The token is trying to break through the resistance level while testing the level of support.

At press time, Dogecoin (DOGE) is trading at $0.1613, with a 24-hour trading volume of $4.20 billion and a market capitalization of $24.63 billion. Over the last 24 hours, DOGE has slightly decreased by 0.35%, reflecting continued market caution.

Dogecoin Signals Bearish Reversal Daily Chart

Analysts are now picking up on early indications of a possible reversal at play. Crypto analyst Trader Tardigrade recently pointed out on Twitter that Dogecoin is exhibiting a Bearish Reversal on the daily chart, as evidenced by the fact that the daily candle is closing lower while the Relative Strength Index (RSI) is making a higher low.

Also Read | Dogecoin Gears Up for Breakout: $0.20 Resistance Faces Next Big Test

DOGE Eyes Critical Resistance Break

Another analyst, BitGuru, highlighted that Dogecoin has been under constant downward pressure as it preceded the rejection of the last major high level at $0.183. DOGE has been creating lower highs and correcting downward to reach the support level at $0.160, but it looks like this point is currently being held, giving DOGE a chance to bounce back.

Nonetheless, it is clear that DOGE staged a rebound, and analysts are of the view that Dogecoin must break through $0.166-$0.168 strongly to evidence a positive turnaround. In the meantime, trading activity is likely to tread with caution as various levels are being tested.

The value of DOGE is being closely watched by investors and analysts alike. If this breakout is successful, it will mark the beginning of an upward trend, and failure to break through can mean the continuation of the downtrend.

Also Read | Dogecoin (DOGE) Surge Alert: 0.74% Price Rally Forecast