Dogecoin (DOGE), the cryptocurrency inspired by internet memes, is at a critical juncture in its price trend. Its price continues to tighten within the descending triangle formation, showing low volatility and gradually shrinking price fluctuation amplitude. This formation often reflects market indecision, suggesting a potential major breakout or crash.
Currently, the 200-period moving average is exerting dynamic resistance from above, while the horizontal support level is also showing signs of weakness. The technical outlook for Dogecoin suggests that if the key support level is lost, the price may face further declines.
Market analyst Thomas Anderson pointed out in an analysis on the X platform
Dogecoin is currently in the consolidation phase of a descending triangle formation within the M30 time frame. This formation is characterized by a flat support level and gradually lowering highs, indicating that bearish pressure is building up.
Anderson stated that Dogecoin is currently testing the resistance level at $0.19998, which not only coincides with the descending trend line of the triangle but is also reinforced by the 200-day moving average, forming a strong dynamic resistance. This makes any bullish breakout attempts challenging for the bulls in the short term.
As the price further compresses near the apex of the descending triangle, market momentum is weakening. The 1-hour chart shows a noticeable narrowing of the price fluctuation range, which is usually a precursor to explosive volatility.
If Dogecoin can break through the resistance level of $0.19998, accompanied by increased trading volume, it may open up short-term bullish space, challenging higher target levels and potentially breaking the current bearish formation. However, if it fails to break this resistance, the price may retreat to the triangular lower support level near $0.19010, which was previously a key area for buyers to enter.
Currently, the price trend of Dogecoin is still locked in a narrow range, and the market is waiting for clear directional signals.
Whether it breaks upwards or pulls back downwards, the compressive characteristics of the descending triangle indicate that significant price volatility may occur in the future. Investors need to closely monitor the performance of the resistance level at $0.19998 and the support level at $0.19010 to determine the next wave of Dogecoin's market direction.
