Dogecoin traded at a critical technical level after revisiting a long-standing bearish structure on the daily chart. Data shared on X by analyst Trader Tardigrade shows DOGE/USD retesting the lower boundary of a descending channel. This move follows a sharp breakdown and a brief recovery attempt, placing prices at a decision point for short-term direction.
The daily chart shows Dogecoin moving within a clearly defined descending channel marked by parallel red trendlines. This structure has guided price actions since late 2025. During this period, Dogecoin formed consistent lower highs and lower lows. Each recovery stalled near channel resistance, while declines repeatedly paused near the lower boundary.
Recent price actions place DOGE near the channel’s lower edge around $0.125–$0.130. A visible long lower wick near this zone signals rejection of lower prices during the session. Buyers stepped in after the decline, although the broader structure remains bearish unless price breaks above channel resistance.
The descending channel remains the dominant technical feature on the daily timeframe. Dogecoin respected this structure for several months as prices followed the downward slope. Each rally attempt failed near the upper boundary, confirming persistent selling pressure.
Earlier this month, Dogecoin staged a sharp upside move from the channel’s lower region. The rebound briefly pushed prices toward the mid-to-upper area of the channel. Selling resumed quickly, halting the advance and reversing the move.
Following that rejection, DOGE retraced lower and returned to the channel’s lower boundary. The chart marks this retest zone with a green circle, signaling a direct test of structural support that previously contained downside moves.
CoinDesk reported that Dogecoin broke down after repeated failures near the $0.137–$0.138 range. Selling accelerated once prices slipped below this area. The move extended to a low near $0.125 before bids appeared.
Trading volume surged sharply during the breakdown. The spike aligned with forced selling rather than gradual distribution. After the decline, volume tapered as prices compressed near support.
Since the flush, DOGE has traded within a narrow band near $0.127. This consolidation suggests selling pressure has slowed. The structure still places price below former support, which now acts as resistance.
Dogecoin remains one of the most recognized meme-based cryptocurrencies. The broader digital asset market has grown substantially, reaching a reported market value of $3.2 trillion. This growth introduced assets like Dogecoin to a wide audience.
Over the past five years, Dogecoin’s prices rose about 1,350% as of January 13, despite heavy volatility. The token still trades about 81% below its historical peak. Price swings continue to define its market behavior.
While Dogecoin operates on its own network, its functionality remains limited compared with smart contract platforms. Development efforts such as GigaWallet and DogeOS aim to expand utility. The key question remains whether technical support within the descending channel can hold as price tests this level again.
Read More: Will Dogecoin Follow Its Previous Rally Patterns?
Dogecoin price analysis shows DOGE retesting the lower boundary of a descending channel on the daily chart. Price stabilized near $0.125–$0.130 after a breakdown with high volume. The market now sits at a decision level, where support holding or failing may define the next directional move.