Dogecoin is attempting to hold critical support near $0.120 as technical analysts warn the cryptocurrency's correction may extend further. Multiple market observers suggest a 15% move could materialize as the memecoin forms a new symmetrical triangle pattern on lower timeframes.
What Happened: Triangle Breakdown
Dogecoin dropped 4.2% Friday to trade near $0.126 amid broader market volatility. The cryptocurrency has fallen more than 50% from early October highs, losing multiple support levels over two months.
After breaking below $0.135 nearly two weeks ago, DOGE has traded within a $0.120-$0.135 range. The largest memecoin by market capitalization now attempts to hold the $0.120 support zone.
Analyst More Crypto Online said Dogecoin "is still a falling knife" in an X post. "There's no evidence that wave B has bottomed," he wrote, suggesting a 20% decline toward $0.096 and $0.08 remains possible. "Caution is recommended until the price shows a first micro 5-wave move to the upside."
Analyst Crypto Jobs warned the cryptocurrency lacks a bullish reversal structure.
"No buy pressure at the moment, without volume," he wrote. "Under the main downtrend & channel, seeing another dump toward the $0.100-$0.09500 lower support looks realistic."
Trader Tardigrade noted Dogecoin completed the target of its previous symmetrical triangle after breaking down earlier this month. The cryptocurrency now forms another symmetrical triangle pattern on the four-hour chart that could resolve in a 15% move in either direction.
Friday's decline pushed Dogecoin below the pattern's lower boundary near $0.123, signaling a potential drop toward $0.10-$0.11 if the price fails to bounce.
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Why It Matters: Support Testing
Market watcher BitGuru considers the deep correction complete. He noted Dogecoin sits in a major demand zone between $0.120-$0.130 where liquidity has been swept.
A reclaim of late November levels could trigger a rally toward $0.18 resistance, BitGuru said. Failure to hold current levels would suggest an extended consolidation phase.
Crypto Jobs added that momentum remains bearish despite holding the $0.12 level. He said bulls won't regain control unless DOGE breaks above $0.14-$0.15, which would invalidate the current downtrend structure.
Dogecoin trades at $0.1226, down 8% over the past week.
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