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Dogecoin is trading at a critical level as prices compressed within a falling wedge on the daily DOGE/USDT chart from Binance. The setup was shared on X by analyst Hailey LUNC, which reflects several months of tightening price action since early October.
The structure follows a failed attempt to hold above the $0.27 region in late September and early October. This rejection triggered a steady downtrend marked by lower highs and lower lows; the price is now trading near $0.138 as buyers and sellers approach a decisive moment.
The daily chart shows two clearly descending trendlines shaping the falling wedge. The upper diagonal resistance has capped every recovery attempt since October. White arrows on the chart mark repeated rejections during November and early December, these reactions indicate that sellers remained active near that declining resistance.
At the same time, the lower diagonal support continues to attract demand. Blue arrows mark several bounce points where the price rebounded after testing the support line. Each reaction confirmed the level as an active demand zone.
These repeated defenses prevented deeper breakdowns despite broader weakness. As the price moved lower, the gap between the trendlines narrowed, signaling a compression of volatility, which often appears late in a falling wedge. With prices pressing against the structure, the chart suggests how directional pressure still continues to build.
As of mid-December, DOGE is trading close to $0.138. This level sits near the lower boundary of the wedge. According to a separate NewsBTC analysis, failure to move above $0.140 could extend downside pressure in the short term.
Initial support rests near $0.1340. Below that, traders watch $0.1325 as the next support zone. The main support level remains $0.130; a break below that level could open the door to $0.1250 or even $0.1240.
Short-term indicators show mixed conditions. The hourly MACD continues to gain momentum in the bearish zone. Meanwhile, the hourly RSI sits above the 50 level. Major resistance levels remain at $0.1400 and $0.1420, aligning with near-term structural barriers.
Hailey LUNC described the pattern as a ‘clean Falling Wedge’, noting that the price is compressing against the trendline. In technical analysis, such formations often precede sharp directional moves once the structure breaks.
The chart includes a projected breakout path once the price reclaims the upper diagonal resistance. It shows an initial breakout above resistance, with a brief pullback to confirm the reclaimed trendline. After that, the price accelerates toward the $0.27 region, which stands as the prior distribution zone from September.
The $0.27 level remains clearly marked by a dashed horizontal line on the chart, representing a zone where sellers previously gained control. If prices reclaim that area, it would reflect a major shift in daily market structure. This leads to the question: Will Dogecoin first defend support or break downward before that move develops?
Also Read: DOGE Consolidates Below $0.14 as Analysts Track Historical Rally Cycles
Dogecoin price continues to compress within a clearly defined falling wedge on the daily chart. Repeated resistance rejections and firm diagonal support shape a tightening structure near $0.138; a confirmed break above diagonal resistance could quickly shift market structure, paving the way for the $0.27 level.
