Dogecoin trades near a critical support level that could determine its next major move. The meme coin hovers around $0.13 after recent declines, testing a technical boundary that has held multiple times since December 2024.
What Happened: Technical Pattern
A crypto analyst operating under the name Butterfly pointed to Dogecoin's position within a descending triangle pattern on the two-day chart. Price action shows the cryptocurrency clustering just above a support zone between $0.135 and $0.14.
The pattern has shaped trading since December 2024, with a downward-sloping trendline capping rallies and creating lower highs.
The horizontal support underneath has caught multiple drops and prevented deeper breakdowns. Each previous visit to this zone produced at least a temporary bounce.
The analyst noted that this support level has been "respected multiple times" and that bulls are "getting ready to step in." Sellers have controlled most recent candles, and rebound attempts have faded quickly. The price now sits with less room for sideways movement before a decisive break occurs.
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Why It Matters: Potential Breakout
If the support zone holds again, it could signal that sellers are losing momentum at current prices. A rebound from this level could push Dogecoin toward descending resistance between $0.25 and $0.26, according to the analysis.
Breaking above that trendline would mark the first higher high in months and confirm an upside resolution to the triangle pattern.
The analyst's chart sketches a potential path that lifts the cryptocurrency from current support, breaks above resistance, and reaches as high as $0.4 in a swift move.
Even modest buying could drive significant upside if the lower boundary holds, as the technical setup tightens ahead of a directional break.
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