Dogecoin (DOGE) is testing critical support around $0.13 after breaking below a 763-day diagonal support trendline in November.
The meme coin currently trades at $0.131, down 58% year-over-year and 20% over the past month.
Technical analysts identify early stabilization signals despite the prolonged downtrend.
Short-term selling pressure appears to be moderating as buyers defend key price levels.
What Happened
DOGE sold off aggressively from $0.136 in early December before probing support multiple times.
Price briefly dipped below $0.124 to sweep liquidity before recovering.
The token has started printing higher lows around $0.126, suggesting buyers are stepping in earlier than before.
Analyst Crypto Tony identified the $0.128-$0.130 zone as a critical inflection area.
This region previously capped price action, making reclaiming it essential for bulls.
RSI divergence has formed on the 4-hour chart, with the indicator making higher lows while price continued grinding lower from above $0.140.
This disconnect often appears near turning points following prolonged downside pressure.
Selling spikes are getting smaller and less aggressive, suggesting distribution may be fading.
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Why It Matters
Dogecoin's break below its 763-day support trendline in November raised concerns the bull cycle has ended.
The weekly chart shows neither RSI nor MACD generating bullish divergence, making rebounds less likely.
Technical analysts warn a close below $0.130 could trigger a 25% crash to $0.095.
If buyers reclaim the $0.128-$0.130 zone, DOGE could attempt recovery toward $0.135 and potentially $0.140.
A confirmed break above recent swing highs near $0.132 would help validate the momentum shift.
Failure to hold current support levels brings $0.105 and $0.095 into play as next downside targets.
Daily charts show DOGE trading inside a descending parallel channel, continuously making new lows.
Price fell below the channel's midline, increasing the likelihood of further declines toward the support trendline at $0.105.
The broader cryptocurrency market remains under pressure, with Bitcoin trading around $97,000 after recent volatility.
Dogecoin faces additional headwinds from declining memecoin sector momentum compared to late 2024 peaks.
Trading volume remains elevated at $1.99 billion over 24 hours, suggesting continued market participation despite price weakness.
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