King meme coin, Dogecoin (CRYPTO: DOGE), is facing sell-off pressure as evident in the 51.14% drop in trading volume to $998.95 million. However, an analysis of the Bollinger Bands suggests that bearish sentiments might be coming to an end.

Looking at the Bollinger Bands closely, the short-term nine-day moving average is still trading below the 21-day average in the Bollinger Bands, according to CoinMarketCap data. As the Bollinger Bands suggest lower prices, they also indicate oversold territory.

Dogecoin is trading at the lower end of the bands, which could indicate that the meme coin is approaching oversold levels. As the sell-off lessens, we might see a shift in price.

The Bollinger Bands, known for their role in charting price trends and volatility, suggest that overselling is taking place, hinting at a potential imminent price reversal for Dogecoin.

Typically, this setup occurs ahead of a substantial price shift for an asset, and Dogecoin seems poised for such a shift soon.

Moreover, the decline in trading volume indicates diminishing interest from market participants, with buyers hesitant to continue purchasing the meme coin.

This development could ultimately lead to a price recovery as demand lessens and prices begin to rise.

At the time of writing, DOGE was trading at $0.1870, reflecting a 5.38% increase over the last 24 hours. This uptick suggests that buying interest is gradually returning.

However, if volume continues to decrease and fails to return to the green zone, the price rebound could lose momentum and slip back.

To recover, Dogecoin needs to maintain a price above $0.170 to encourage traders to buy again. This could support a rebound towards higher levels around $0.2. Without a surge in volume or a broader market catalyst, the recovery might encounter difficulties and slip back.

In the broader market, Bitcoin (CRYPTO: BTC) is also showing an upward trend with a 1.43% increase in the last 24 hours. This rise could benefit Dogecoin and other altcoins.

Unlike DOGE, Bitcoin’s volume outlook appears better despite remaining in the red zone with a 28.92% decrease in volume to $44.45 billion.

Another bullish ecosystem indicator is the recent spike in open interest, which rose by a noteworthy 1.78% despite concerns over volatility. This signifies that investor confidence in the meme coin has not diminished.