Dogecoin (DOGE) is currently experiencing a downturn in its market sentiment, as indicated by a death cross formation on its hourly chart, signaling a potential shift in momentum. Despite this bearish signal, DOGE has demonstrated resilience with a significant 17% gain over the past week, successfully reaching the $0.18 mark. This uplift is attributed to a revival in market optimism, spurred by easing tensions between the US and China in their trade disputes, alongside President Trump’s acknowledgment of the Federal Reserve’s stance. Dogecoin stands out as one of the leading altcoins, capitalizing on the influx of retail investment.

### Could This Be a Turning Point for Dogecoin?

Even with the formation of a death cross, where the MACD falls below the signal line, suggesting a decrease in buyer momentum, Dogecoin appears to retain its potential for recovery. Data shows a bullish sentiment among traders, with a 4-hour Long/Short ratio at 1.97, indicating that 66.3% of traders are optimistic about a price increase.

Despite the bearish indicators, the overall sentiment hasn’t fully turned negative. With a slight increase in open interest, there’s a possibility that Dogecoin could defy the odds and avoid a major downturn.

### Is Dogecoin Poised for a Comeback?

Dogecoin is on the verge of a breakout, aiming to surpass the upper boundary of the descending channel that has dominated its trend for several months. Having overcome the 20SMA barrier, which previously restricted its growth, Dogecoin is now set for a potential 45% rise towards the $0.25 resistance level. The momentum indicators suggest increasing bullishness, with the 3-day MACD expanding its divergence above the signal line, a positive sign since the post-election rally. While the RSI remains just below the neutral mark, indicating that higher timeframes haven’t entirely shifted to a bullish viewpoint, the sustained buying pressure could lead to a significant breakout, potentially escalating the gains to 160% from its current position.

In light of the current trends, Dogecoin showcases both the challenges and opportunities within the volatile crypto market, highlighting the dynamic nature of its valuation and investor sentiment.

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