Alex Dudov
⬤ DOGE is finding stability near a critical base area on the daily chart after wrapping up a liquidity sweep and sitting through a lengthy consolidation phase. The price is now hovering around support, and the downward pressure has noticeably eased. The market is trying to hold this level before making its next big move.
⬤ The chart tells an interesting story. What started as a steady decline has morphed into tight sideways action near the lows. Instead of continuing to drop, the candles are bunching up around the base zone. This compression suggests the market is testing whether buyers have the strength to defend this level. "The market is attempting to hold this level before the next directional move," notes the analyst. We've seen similar behavior before - a comparable stabilization phase that led to a reversal was covered in Dogecoin reversal confirmed: DOGE breaks out of bearish channel and targets higher highs.
⬤ Looking up from current prices, the next hurdle sits in the resistance region that formed during the previous distribution range. If support manages to hold here, DOGE could kick off a recovery wave toward those higher levels as some balance develops near the bottom of the range. Similar post-breakout behavior was explored in DOGE breaks descending trendline and holds retest but momentum needs to catch up.
⬤ What really matters here is how price reacts at this base zone. Successfully holding support would let DOGE shift from consolidation mode into recovery mode. But if this level gives way, we're likely looking at more downside and an extension of the current bearish structure.
Alex Dudov
