In the wake of a recent bearish reversal testing the 100-day moving average, Dogecoin (DOGE) finds itself at a critical juncture. Despite the formation of a double bottom on the daily chart, which suggests potential growth, market conditions hint at a possible correction. The question arises whether DOGE can recover after its recent 8% drop over two days, leading to the emergence of two bearish candles.

Currently, Dogecoin is trading at $0.08347, down 2.30% from the previous day. Although the price remains above the $0.082 support level, it is forming a long tail, which could indicate bullish intentions to continue the upward trend. However, if the DOGE price falls below the descending trend line, it could intensify selling pressure among traders.

Technical indicators such as MACD and moving averages are showing mixed signals. If the bullish crossover between the MACD and the signal line surpasses the midline, it could provide additional momentum for buyers. At the same time, price fluctuations between the 50- and 200-day moving averages indicate a sideways trend in the medium term.

A crucial point for Dogecoin will be its ability to withstand this downturn. Following a bullish reversal from the 61.8% Fibonacci correction level around $0.0748, DOGE achieved a breakthrough from the nearest resistance of the descending trend line. If the price holds above $0.082, there is potential for a 28% increase to surpass the last swing high of $0.106.