Even as the sentiment in the overall cryptocurrency market still remains under a cloud, leading memecoin Dogecoin (DOGE) is experiencing somewhat of a recovery, up by over 14% in the past 24 hours. At the time of writing, DOGE/USD is trading around $0.21.

The high levels of volatility in the wider crypto sector saw the digital come crashing by over 36% on Monday, only to post an almost 7% gain in the previous session. The upbeat mood appears to be holding for now after Dogecoin climbed up from around the $0.18 level over the past few hours.

Dogecoin’s leading promoter Elon Musk, the CEO of Tesla, was at it again on Tuesday, trying to support its price amid the fall, when he responded to a tweet agreeing that the testnet of the fee reduction code would mark an important improvement in the blockchain network. However, his post was met with much criticism among Doge’s online community who called him out for driving significant losses in the market value of cryptocurrencies last month when his company announced the decision to stop accepting Bitcoin as payments.

On Wednesday, DOGE/USD is likely to find some support from news that Canada’s sole regulated crypto firm Wealthsimple Digital Assets Inc. has received the go ahead from the Ontario Securities Commission (OSC) to add Dogecoin to its list of offerings. This drive could propel a potential uptick in interest among investors towards the memecoin. However, the prevalent sentiment among crypto investors is likely to remain the key focus in determining major price trends in the coin in the immediate future.

Key Levels to Watch

On the H4 chart of DOGE/USD, most of the moving averages are pointing to sellers being in control at the moment. However, leading technical indicators MACD and momentum are suggesting a build-up of buying interest, which could take the price higher.

Dogecoin’s price needs to break past the support it fell through which sits at $0.24 as well as overcome the pivot point at $0.29 for a confirmation of the trend reversal. If buying pressure can build up and take DOGE higher above these levels, they could encounter some resistance around the $0.32 level and then at around $0.37.