Dogecoin is facing a tough test. The memecoin has reached a major resistance zone on its monthly chart, one that has triggered sharp declines in the past. But right now, buyers are defending support near $0.080, keeping a short-term rebound alive.
Trader Tardigrade, an analyst on X, pointed out that Dogecoin is once again testing the upper boundary of a long-term descending broadening channel. This pattern has contained price action for years. Historical data shows similar setups in 2017 and 2020, both times leading to significant drops after rallies into that resistance. The current chart also shows Dogecoin breaking below a rising support structure from the latest advance. That loss of momentum is concerning, especially as price approaches overhead resistance.
The channel pattern and what it means
The descending broadening channel remains the dominant pattern. As long as Dogecoin stays below the upper boundary, the analysis leans toward another rejection rather than a breakout. If sellers regain control, the chart projection points to a drop toward the lower channel support. The key level to watch is that resistance zone. A rejection would reinforce the historical pattern. But a confirmed breakout would challenge the bearish outlook.
Meanwhile, there is some short-term optimism. DailyTradeSetups, another analyst on X, noted that Dogecoin is showing signs of buyer absorption near a support zone around $0.08033. This happened after price dipped below the value area low (VAL) at about $0.08088. In a relatively thin order book, buyers stepped in and prevented a deeper decline.
Order flow and potential reversal signals
A bullish delta divergence appeared during that test. While price revisited lower levels, order flow data indicated stronger buying activity beneath the surface—often a sign of accumulation. The setup identifies a stop-loss near $0.07730, with upside targets at $0.08639 and $0.08941. The second target aligns with a higher liquidity and resistance zone.
The point of control (POC) near $0.08270 is another important marker. A move back above that area could strengthen the bullish case and improve the odds of reaching those targets. For now, it seems Dogecoin is trying to stabilize after absorbing selling pressure below support, with buyers aiming to push price back toward the $0.086-$0.089 region.
This is a tense moment for Dogecoin. The long-term chart warns of potential downside, but the short-term order flow suggests a rebound might be forming. Which path the price takes likely depends on whether buyers can hold $0.080 and push through that key resistance.
