Dogecoin has been trading within a well-defined descending channel since early February respecting both trendline resistance and support Despite recent bullish momentum price action remains confined under a major trendline indicating the bearish structure is still intact
Key Observations:
Trend Price continues to form lower highs and lower lows within a downward channel
Change of Character (ChoCH) Previous minor bullish shifts failed to sustain reinforcing bearish dominance
Resistance: A significant resistance zone sits around $0.204 aligned with previous highs and the upper boundary of the channel
Liquidity Zone: There's visible liquidity resting around $0.183 which may attract price for a stop-hunt or fakeout before a potential drop
Current Structure The price is testing trendline resistance suggesting a potential rejection setup
Support Target: If rejection occurs bears may aim for the $0.09 support zone aligning with the channel’s lower boundary
Scenarios
Bearish Case (primary) Rejection from trendline and liquidity zone could trigger a drop toward $0.12 then potentially to $0.09
Bullish Invalidator A clear breakout and hold above $0.204 would challenge the bearish narrative
This setup offers a clean risk-reward opportunity for traders watching for a rejection confirmation As always manage risk and wait for proper confirmation