Dogecoin Signals Potential Trend Reversal With Double Bottom Setup

Source: ETHNews Original Title: Dogecoin Signals Potential Trend Reversal With Double Bottom Setup Original Link: Dogecoin is showing early signs of a recovery after a sharp December drop, with fresh chart data highlighting a potential trend reversal in progress. The price briefly collapsed below $0.1320 before rebounding with strong momentum, returning to the $0.1500 region as buyers stepped back in.

Strong Rebound After Sharp Sell-Off

The chart shows a steep decline beginning late November, with Dogecoin losing altitude quickly as increased sell volume accelerated the move. The selloff culminated in a December 2 low, marking one of the steepest intraday declines for DOGE in recent weeks.

But the price action quickly flipped. A surge in buy volume pushed DOGE higher, reclaiming levels above $0.1350 and maintaining a continued upward slope into December 3. The recovery brought the asset back to roughly $0.1500 – its highest level since the breakdown.

Double Bottom Pattern Emerges

Analyst Trader Tardigrade highlighted a clear double bottom pattern on the 12-hour chart. The graphic shows two nearly identical troughs formed at the December low, with a sharp reversal after each test.

The pattern’s structure indicates that sellers may have exhausted momentum and that buyers are defending the same demand zone. The analysis suggests a potential bullish reversal, provided Dogecoin maintains strength above the neckline around the mid-$0.14 range.

Market Context Supports Momentum

The broader crypto market has seen heavy volatility, but pockets of strength have appeared as several assets rebound from local lows. Dogecoin’s recovery aligns with that reversal narrative, with rising volume confirming renewed interest from traders.

The chart shows volume spikes accompanying both legs of the rebound, signaling genuine buy-side participation rather than a low-liquidity bounce.

Key Levels To Watch

The analysis highlights two key observations:

• A sustained close above $0.1500 is needed to confirm the breakout from the double bottom structure.
• If DOGE retests lower levels, maintaining support above $0.1380 becomes crucial for preserving the bullish setup.

Dogecoin now sits at an important technical crossroads. Traders will be watching whether this double bottom formation transforms into a true trend reversal, or if sellers return to pressure the price back into its recent range.