Dogecoin Approaches a Critical Turning Point
Dogecoin’s price could soon face a decisive move as it tests a long-standing ascending support line that has held firm for nearly a year. Analysts warn that a breakdown from this trend line may trigger a significant decline, pushing DOGE to new yearly lows.
The overall trend remains uncertain, but technical indicators suggest a growing bearish bias. Despite occasional rallies, Dogecoin has struggled to regain its earlier momentum, and traders are now watching for signs of a reversal or a deeper correction.
Repeated Rejections Indicate Weakness
On the weekly chart, Dogecoin broke above a long-term descending resistance line earlier this year. However, the breakout failed to gain traction above the $0.115 resistance zone. A sharp rejection from that level formed a long upper wick — a bearish signal showing that sellers quickly overwhelmed buyers.
Following this rejection, the price has retreated toward an ascending support line established since June 2022. This marks the fourth test of the line, and a breakdown could signal a shift in long-term momentum.
Adding to the bearish sentiment, the weekly Relative Strength Index (RSI) sits below 50 and continues to decline. The RSI’s downward movement suggests weakening momentum and increasing selling pressure.
Descending Triangle Confirms Bearish Outlook
The daily chart reinforces the bearish narrative. Since November 2022, DOGE has been confined within a descending triangle pattern — a formation typically associated with breakdowns.
Dogecoin is currently trading close to the base of the triangle near $0.067. If the price breaches this support level, the pattern’s projected move points toward a target of $0.04. Such a decline would mark a fresh yearly low and confirm a continuation of the broader bearish trend.
However, if the price reverses and breaks above the triangle’s resistance line, the bearish outlook would be invalidated. In that case, a short-term rally toward $0.105 becomes the more probable scenario.
What Comes Next for DOGE
Dogecoin’s near-term trajectory depends on whether bulls can defend the $0.067 support zone. If this level fails to hold, sellers could drive prices down swiftly. Traders are advised to monitor both price action and volume closely, as a confirmed breakdown may trigger panic selling.
While Dogecoin retains its cultural appeal and strong community backing, technical signals point toward caution. The next few weeks could determine whether the meme coin stabilizes or slides further into bearish territory.
