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Dogecoin (DOGE) is standing at a critical juncture for significant price movement as it forms a technical pattern suggesting a potential trend reversal at a key support level. Analysts predict that movement within this support zone could trigger a new bullish phase, laying the groundwork for a short-term rise to $0.165.
According to cryptocurrency media outlet Bitcoinist on February 18 (local time), digital asset market analyst Naveer identified the horizontal support zone around $0.10 as the most crucial level to watch after examining Dogecoin’s recent price action. He stated that he has already accumulated a partial position near $0.10 and plans additional purchases depending on whether the price defends this level or forms a divergence.
Based on the weekly chart shared by Naveer, Dogecoin is compressing in a price range just above the long-term support area between $0.07 and $0.10, which previously acted as resistance. A falling trendline of lower highs is converging with horizontal support, forming a narrowing wedge pattern that suggests a major volatility event could occur soon.
While the price establishes new lows near the $0.10 support level, the Relative Strength Index (RSI) declined from 37.22 to 34.78, indicating that bearish momentum is slowing. Naveer expects to see lower-timeframe volume inflows and the formation of divergence in this zone, signaling that buying pressure is absorbing supply. He explained that an impulsive price move would be considered confirmation of divergence formation.
Another digital asset expert, Trader Tardigrade, analyzed that Dogecoin has officially broken out of its descending channel and transitioned into an ascending channel. According to his analysis, Dogecoin recently broke above its bearish structure and successfully retested the lower support line below $0.083.
After entering a new bullish channel, Dogecoin has been forming steadily higher lows and higher highs, displaying a classic trend reversal pattern. Based on this momentum shift, Trader Tardigrade projected a strong possibility that Dogecoin could rally toward $0.165 in the coming period.
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