Dogecoin’s most recent attempt at recovery is beginning to show signs of weakness as the meme coin finds it difficult to build up enough momentum to maintain a significant increase. Although DOGE recovered some of its recent losses after rising from the local bottom close to the $0.07 zone, the larger technical picture indicates that the rally lacks the strength required for a trend reversal. Volume is the most obvious problem.
Even though DOGE has seen a slight increase in recent trading sessions, trading activity is still down. Historically, successful recoveries in Dogecoin have been accompanied by a notable increase in volume, signaling strong buyer participation.
However, this time, the market seems hesitant. The latest green candles have formed on relatively weak participation, raising concerns that the move is little more than a temporary relief rally. Technically speaking, the structure is still very negative. On the chart, DOGE is trading below every significant moving average.
Even if DOGE manages to push higher in the short term, it will face substantial selling pressure around the $0.08–$0.09 range where several key moving averages converge. The overall trend is another red flag.
Dogecoin has continuously formed lower highs and lower lows since its May peak, which continues to be the classic definition of a downtrend. That structure is still valid despite the recent bounce. The market is still under bearish control until DOGE is able to reclaim significant resistance levels and set a higher high.
The indicator is still below levels that are usually linked to significant bullish momentum, though. This implies that although buyers have avoided another sudden collapse, they have not yet shown the conviction required to propel a more significant recovery. As of right now, Dogecoin’s upside attempt seems futile. The current move runs the risk of fading into another lower high within the larger bearish trend in the absence of a sizable increase in buying volume and a break above important resistance levels.
XRP’s RSI divergence
As a significant RSI divergence starts to appear on the daily chart, XRP is exhibiting one of the first significant technical gains in weeks. Although the price recently dropped to a new local low close to the $1.05 area, momentum indicators did not support the decline, resulting in a bullish divergence that traders frequently observe as a sign of an impending reversal.
This shows that even though sellers were able to drive the asset to a new short-term low, bearish momentum is waning. Such setups often occur close to exhaustion points, where selling pressure begins to wane, but they do not ensure an instant rally. The problem for XRP is that the overall trend is still overwhelmingly negative. The asset is still trading below all major moving averages, despite the recent rebound.
The 100-day and 200-day moving averages are still much higher, but the 50-day EMA is currently serving as the closest dynamic resistance. A crucial test for bulls has already been created by the recovery attempt, which has brought XRP into contact with the declining 50 EMA. The bullish divergence narrative would be strengthened by a successful breakout above this level, which might pave the way to the $1.20-$1.30 region, where the 100-day EMA and earlier support-turned-resistance levels converge.
Nonetheless, volume remains a concern. In contrast to significant trend reversals, which typically start with aggressive accumulation, XRP’s recovery has happened during comparatively normal trading activity.
Although there is still little proof of significant institutional or widespread participation, buyers have demonstrated a willingness to defend the market. The RSI itself has already recovered above the neutral 50 threshold, reflecting improving momentum conditions.
The strongest bullish signal on XRP’s chart at the moment is the notable RSI divergence. However, a full-scale reversal will require confirmation through a sustained breakout above key resistance levels on strong volume.
Bitcoin’s comeback is shallow for now
Although Bitcoin has made a respectable comeback from its recent lows around $59,000, the most recent price action indicates that it might be too soon to declare it a true recovery. While bulls have managed to halt the aggressive sell-off that dominated the market in June, the broader technical structure still favors caution rather than optimism.
Nonetheless, there are a number of important resistance zones. Most notably, the 50-day and 100-day moving averages, which both continue to slope downward and support the bearish trend, remain above the current price of Bitcoin.
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Bitcoin saw a dramatic liquidation event that wiped out weeks’ worth of gains after breaking away from the rising trendline that had supported the April–May advance. These actions do not always indicate a trend reversal, but they frequently result in brief rallies when oversold conditions return to normal.
A bullish interpretation is likewise not supported by volume. The strongest trading activity in recent weeks occurred during the sell-off itself, indicating aggressive distribution rather than accumulation.
The current recovery has developed on declining volume, suggesting that buyers lack strong conviction. Momentum indicators provide conflicting signals. The RSI has recovered from oversold territory and is approaching neutral levels, which confirms that selling pressure has eased.
However, the indicator remains far from the levels typically associated with strong bullish momentum. To put it another way, the market has stabilized but hasn’t yet shown clear signs of strength. For Bitcoin to establish a more credible recovery, bulls need to reclaim the 50-day EMA near $63,000 and then challenge the 100-day EMA around $66,000.
Bitcoin’s rally looks more like a technical bounce within a larger downtrend than the start of a new bull run until those levels are recovered.
