A new technical analysis from crypto analyst BitGuru on X suggests Dogecoin is trading at a key level that could signal an upcoming upward move. His chart indicates a familiar pattern forming at a major support level, which previously served as the launchpad for a rally earlier this year. The current price action mirrors that earlier setup, hinting that Dogecoin may be gearing up for another recovery push above $0.20.
Dogecoin Returns to a Key Support Zone
Dogecoin has spent recent weeks fluctuating between $0.13 and $0.15, lacking clear bullish momentum. This period extends a downtrend that began in mid-September from around $0.30.
Notably, analysis of Dogecoin’s daily chart shows the cryptocurrency is now positioned at a significant historical support level—the same area that ignited past rallies. This support zone lies between $0.139 and $0.141, marking the lower boundary of a wide accumulation range where the price has repeatedly stabilized before surging.
Despite broader market weakness, this support has held. December’s price action has formed several transition candles on the daily chart, creating a higher low compared to November’s breakdown, which had pushed Dogecoin below $0.135.
Another key observation from the analyst is the tight compression forming around Dogecoin’s price candles. The chart shows a series of narrow movements, suggesting selling momentum is fading. BitGuru interprets this as seller exhaustion, meaning the downward pressure seen in November is easing. Such a narrowing range often signals the final stage of a downtrend, with buyers starting to regain control.
Buyers Begin to Step In, Mid-Range Target Next
Early signs of buyer strength are emerging within this compressed zone. Over the past 24 hours, Dogecoin bounced from an intraday low of $0.14, rising 4.1%. This rebound marks the first meaningful pushback from buyers after days of bearish activity.
In BitGuru’s chart, a projected arrow points to the mid-range area around $0.188 as the initial target if Dogecoin sustains its rebound from support. A higher target around $0.223 is also highlighted should the bounce gain momentum.
Depending on how Dogecoin performs from here, a bullish move could next target the order block around $0.25, with further potential targets at $0.284 and $0.306.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Dogecoin Price Poised for a Jump as Selling Pressure Eases designed to be helpful for both beginners and more experienced followers
Beginner General Questions
1 What does selling pressure eases actually mean
It means that fewer people are currently trying to sell their Dogecoin When selling slows down and demand stays the same or increases it can push the price upward
2 Why would the Dogecoin price jump now
If a large wave of selling has finished the market can stabilize This often attracts new buyers who see an opportunity creating upward momentum that can lead to a price jump
3 Is this a guaranteed price increase
No it is not a guarantee Its an analysis based on current market conditions Cryptocurrency prices are highly volatile and can change rapidly due to news broader market trends or other unexpected events
4 What typically causes selling pressure in the first place
Common causes include investors taking profits after a price rise negative news fear in the broader crypto market or large holders moving their coins to exchanges
5 How can I check if selling pressure is really easing
You can look at trading charts on sites like TradingView Indicators like trading volume the Relative Strength Index and order book depth can give clues
Intermediate Advanced Questions
6 What are key technical indicators that suggest selling pressure is easing
Look for
Decreasing Volume on Downward Moves Lower trading volume during price dips can indicate exhaustion among sellers
Support Level Holding The price consistently bouncing off a specific level shows buyers are stepping in
RSI Moving Out of Oversold Territory An RSI below 30 is oversold a move back above it can signal a shift in momentum
7 Could this just be a dead cat bounce
Its possible A dead cat bounce is a temporary small recovery followed by a continued downtrend The key is to see if the price can break above recent resistance levels and hold there with increasing volume
8 Does easing selling pressure account for potential new negative catalysts
No technical analysis like this looks primarily at past and present market