Dogecoin’s price is holding firm at the critical $0.14 support level, showing early signs of a potential turnaround. As selling momentum begins to fade, a classic bullish reversal pattern known as a “three-drives” structure appears to be forming, drawing buyers back into the market.

Despite broader market weakness, repeated tests of this price zone have consistently attracted demand. This resilience is bolstered by recent institutional interest, particularly Grayscale’s exchange-traded fund (ETF) exposure, which has provided a positive tailwind at a crucial time for the asset’s technical structure.

A Closer Look at the Technical Setup

The defense of the $0.14 mark has been a key theme in Dogecoin’s recent price action. A recent dip below this level was short-lived and quickly reversed, a move that likely trapped short sellers and cleared out sell-side liquidity before the price reclaimed its support. This type of “fakeout” is often a strong indicator that sellers are losing control.

Currently, the price is trading comfortably above $0.14, posting several consecutive higher daily closes. This behavior is consistent with the development of a bullish three-drives pattern, where each corrective dip into a support zone becomes weaker than the last. This suggests that demand is steadily absorbing the selling pressure, setting the stage for a potential upward move.

Price Targets and Invalidation Levels

If Dogecoin can maintain its footing above $0.14 and continue to form higher lows, it would strengthen the case for a bullish reversal. In this scenario, buyers would likely target the next major resistance levels at $0.21 and $0.24. The latter target is particularly significant as it aligns with the 0.618 Fibonacci retracement level, a key technical marker.

However, the bullish outlook depends entirely on the integrity of the $0.14 support. A decisive break below this level would invalidate the developing pattern and likely open the door for a deeper price correction. For now, the technicals suggest a foundation is being built for a recovery, but traders will be watching for further confirmation.

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