Dogecoin is trading below a solid falling resistance line, with repeated failed rallies, bearish momentum and extreme fear, leaving continuation of the downtrend as the base case.
Summary
- The price is well below the major moving averages, with lower highs, continued bearish momentum and increased volatility indicating a deterioration in the trend.
- Every rally to the falling resistance line is met with strong selling, with volume spikes and long upper wicks confirming the sellers’ control.
- Analysts say only a decisive break above the resistance band would call into question the bearish continuation scenario and the expected lower target zone.
Dogecoin extended its decline after another rejection at a descending resistance line, according to technical analysis.
The cryptocurrency has been trading below a persistent descending resistance trendline, with chart patterns showing compressed lower-high rallies that the analysis suggests indicate continued bearish pressure. Every rally attempt since mid-month has peaked at lower and lower levels, against the falling resistance band.
The price has fallen below former support areas, with sellers maintaining control of the market, the technical analysis said. The structure has created a series of lower highs, a pattern that typically precedes the continuation of the dominant trend.
A rejection at current levels would likely lead Dogecoin (DOGE) to its next confluence of support and the expected target line highlighted in the analysis, the report said. The structure suggests that unless buyers decisively break resistance, the path of least resistance will continue to go down.
Show market data momentum indicators From neutral to bearish, with moving averages showing a large gap that the analysis indicates continues trend deterioration. Volatility remains high and sentiment is bearish. Only a minority of recent trading days have been positive, indicating the difficulty in establishing a stable upward move.
The price is trading well below both major moving averages, with trend momentum remaining negative, the data showed.
Trading view graph analysis shows a downward structure in the recent trading window. After a brief surge to higher levels, Dogecoin failed to stabilize and fell back to its previous range. Volume spikes confirm that sellers have intervened on every upward attempt, with stretched fuses near the highs illustrating how quickly the rallies have reversed, according to the technical breakdown.
The falling resistance line represents the decisive level, according to analysts. A breakout above that would be the first sign of a shift in control. Another rejection, as the structure currently suggests, would strengthen the bearish continuation and could send Dogecoin towards its expected target zone.
With market sentiment in extreme fear and compressed rallies continuing, Dogecoin remains vulnerable until buyers recapture stronger territory, the analysis concluded.
