Dogecoin Drops 3% as Regulatory Delays Pressure Price, Charts Hint at Rebound

Dogecoin underperformed the broader crypto market on Wednesday, sliding more than 3% as selling pressure intensified following renewed delays in U.S. cryptocurrency legislation. The pullback came alongside a noticeable decline in market activity, with trading volume falling nearly 10% over the past 24 hours.

Compared to other large-cap digital assets including Ethereum, XRP, and Solana Dogecoin’s losses were more pronounced. Market sentiment weakened after lawmakers once again postponed discussions around cryptocurrency market structure legislation, a framework intended to define federal oversight for digital assets.

The downturn in spot prices quickly spilled into derivatives markets. Data from Coinglass shows that open interest in DOGE futures dropped 1.79% over the same period, signaling reduced trader participation and lower short-term conviction.

Technical Patterns Point to a Potential Reversal

Despite the recent decline, some analysts believe Dogecoin may be approaching a turning point. Popular crypto analyst Ali Martinez highlighted the formation of an inverse head and shoulders pattern on DOGE’s daily chart a technical setup commonly associated with bullish reversals after prolonged downtrends.

For the pattern to be confirmed, price must break above a key resistance level known as the neckline. In Dogecoin’s case, this level sits near $0.152. A successful breakout above this zone could open the door to a move toward $0.186, representing a potential upside of roughly 30% from current levels.

Indicators Show Mixed Momentum

Momentum indicators present a mixed but improving picture. According to TradingView, the Moving Average Convergence Divergence (MACD) indicator has issued a buy signal, suggesting early signs of bullish momentum.

At the same time, the Bull Bear Power indicator remains neutral, reflecting a balance between buyers and sellers. The Relative Strength Index (RSI) also sits in neutral territory, indicating that Dogecoin is neither overbought nor oversold at present.

Current Price Snapshot

At the time of writing, Dogecoin was trading around $0.1437, down 3.09% over the last 24 hours, according to Benzinga Pro data. Despite the short-term weakness, DOGE remains up approximately 22% year-to-date, underscoring its broader recovery trend.

While regulatory uncertainty continues to weigh on sentiment, technical signals suggest that Dogecoin could be positioning for a rebound—provided buyers regain control and broader market conditions stabilize.