Dogecoin attempted to break through a key resistance level this week but was unsuccessful, prompting attention to shift toward the crucial support zone near $0.088. The latest price movements have become a major talking point for both investors and analysts, as they could determine Dogecoin’s short-term direction in the crypto market.
Technical analysis: swift pullback
Renowned technical analyst Ali Martinez characterized Dogecoin’s recent upward spike on the 12-hour chart as a bull trap. After a brief breakout above the descending triangle’s resistance, the selling pressure quickly pushed DOGE’s price back inside the formation. This swift reversal left buyers with little opportunity to regroup or mount a sustained rally.
For nearly two months, Dogecoin has been confined within a descending triangle pattern. During this phase, price volatility gradually shrank, leading market participants to anticipate a sharp move—typically near the apex of such formations.
Possible scenarios remain balanced
According to Martinez, two clear scenarios are in play: a decisive close above $0.095 could spark a rapid rally targeting $0.14, while failure to break this resistance redirects focus to the $0.088 support. These thresholds are seen as pivotal for the memecoin’s next major price action.
Expectations at the resistance point remained unmet, as buyers could not overcome the persistent selling pressure. This led to a temporary suspension of bullish hopes for Dogecoin. While descending triangles tend to be viewed as bearish, unsuccessful breakouts like this one suggest sellers still maintain control of the market.
Martinez explains, “The $0.088 level forms the base of the triangle, and price action here will be decisive for Dogecoin’s next direction.” He notes that this zone has historically been a vital area, where buyers have repeatedly stepped in to defend the price.
What happens if support breaks?
If the $0.088 support remains intact, Dogecoin will continue trading inside the triangle and could regain technical momentum for another attempt at the resistance zone. This scenario could renew optimism for a bullish breakout among investors.
However, a clear close below $0.088 would significantly weaken the technical outlook. In such a case, the consolidation pattern would be invalidated, and $0.07 would become the next critical target. A close beneath that level would signal clear structural weakness across the market for Dogecoin.
At the time of writing, Dogecoin is trading at approximately $0.09796, having posted a 2.91% gain in the last 24 hours.
