The mini-golden cross, one of the first technical indicators for a trend reversal, is on the verge of in validation, which could jeopardize Dogecoin's much-needed recovery. The bullish crossover between the 50 and 100 EMA, which frequently marks the beginning of an uptrend, seemed to be what DOGE was headed for on the daily chart. Unfortunately it appears that just before confirmation, the momentum stalled. The 50 EMA is curling sideways instead of continuing upward, unable to penetrate the 100 EMA. For bulls looking for long-term gains, this rejection is a warning sign.

The price of Dogecoin is declining steadily and is unable to recover important support zones, which exacerbates the situation. The next crucial support level is hiding close to $0.16, and it is currently hovering just above $0.17. The asset may experience additional losses and revert to the bearish pattern that has dogged it since late March if this line is broken. A steep drop in trading volume adds to the bearish pressure. Volume has experienced a sharp decline since the May peak, suggesting that buyers are not as convinced. Technical structure and robust participation are both necessary for a bullish reversal, and neither is present at the moment. A further warning is that the RSI is veering toward oversold territory without displaying any indications of bullish divergence. This implies that there is not much desire for accumulation, and rallies might not last long unless new catalysts appear.