- DOGE faces rising bearish pressure as short positions climb and momentum weakens.
- An ascending broadening wedge signals potential downside toward key support zones.
- A breakout above $0.1055 could weaken the current bearish outlook
Dogecoin has entered a critical phase after another week of losses. The popular memecoin now trades near $0.090, leaving traders focused on key support levels. Selling pressure has increased, while bullish momentum continues to fade. Several technical indicators suggest caution. At the same time, chart patterns point to a possible larger move ahead. Whether DOGE finds support or breaks lower could shape the next trend.
Bears Gain Control as Selling Pressure Builds
DOGE has slumped more than 5% this week. The decline extends a correction that began in late September. Market sentiment has clearly shifted during that period. Data from CoinGlass shows short positions reaching a one-month high. The long-to-short ratio currently stands at 0.68. Such a reading suggests more traders expect additional downside. CryptoQuant data supports that bearish outlook.
Both spot and futures markets show signs of overheating. Large whale activity in futures markets also favors the sell side. Price currently trades below the 200-day Exponential Moving Average. That level sits near $0.093. However, DOGE remains above the 50-day and 100-day moving averages. Those support levels rest near $0.088 and $0.086. Buyers have managed to defend that zone so far. A breakdown below $0.085 could change the picture quickly.
Technical indicators also suggest weakening momentum. The Relative Strength Index sits near 48. That reading places momentum below the neutral threshold. The MACD indicator remains slightly negative. Together, both signals reflect reduced buying strength. Bulls need stronger momentum to regain control.
Broadening Wedge Points to Additional Risk
Another chart pattern has attracted attention among traders. DOGE currently trades inside an ascending broadening wedge. This formation often signals growing uncertainty. The lower boundary sits near the current trading range. A break below that support could trigger additional selling. Price may then target $0.0871. Further weakness could send DOGE toward $0.0828. The deepest support zone sits between $0.076 and $0.077.
Such a decline would represent nearly 20% downside from current levels. Momentum on this chart has also cooled. Daily RSI recently dropped to 57. That reading suggests bullish strength has weakened. The bearish case would weaken above $0.1055. A breakout through the wedge’s upper boundary would improve sentiment. Buyers would then gain a stronger technical advantage.
DOGE also faces broader sector challenges. Memecoin dominance has fallen to record lows compared with altcoins. That trend reflects reduced investor interest across the segment. For now, DOGE stands at an important crossroads. Support levels continue holding despite rising bearish pressure. A decisive move from current levels could arrive soon. Traders will watch closely as the next chapter unfolds.
