Dogecoin Price Just Entered A Critical Level, But Analyst Says It’s Not Time To Buy
Dogecoin has returned to a significant long-term stage on the month-to-month chart, establishing one other essential take a look at for the meme coin after months of weak price action.
The setup was initially famous by crypto analyst Trader Tardigrade on X, who argued that DOGE is now sitting at a important resistance zone the place earlier rallies have failed. Dogecoin has visited this worth zone solely twice up to now decade, and every go to ended the identical manner.
The Pattern That Has Defined DOGE Since 2015
Trader Tardigrade’s long-term Dogecoin chart shows DOGE trading inside a large descending broadening channel that has formed worth motion for years. This channel has formed Dogecoin’s worth motion for over a decade now, with two clearly outlined crimson trendlines that widen progressively as time passes.
As proven within the chart under, Dogecoin beforehand rallied into the higher resistance of this channel in 2017 and in 2020, and each strikes ended with sturdy rejections adopted by deep corrections. Now, in 2026, Dogecoin has returned to that very same overhead construction for a 3rd time and appears like it’s about to reject once more. As famous by Trader Tardigrade, that is the place we dump Dogecoin.
Dogecoin has already dropped by 8% over the past three days, a decline that got here shortly after DOGE examined that major resistance area, making the sample a powerful warning.
Real Message Behind The Inverted Chart
Trader Tardigrade’s chart presents DOGE/USD on the month-to-month timeframe, however the worth scale is flipped. This means the decrease the chart strikes, the upper Dogecoin is definitely transferring in regular market worth. Therefore, the crimson descending line labeled as important resistance is not a bearish ceiling within the standard sense, however a bullish line on an inverted chart, and a rejection from it sends the worth instantly into an upward motion in actual phrases.
In every of the 2 earlier instances, the 2017 cycle and the 2021 cycle, a rejection from that inverted resistance was adopted by a big transfer downward on the inverted chart, which means a big rally upward on the conventional DOGE chart.
Therefore, the present worth motion needs to be checked out as a return to help as a substitute, and the analyst is expecting a bounce to larger worth ranges. Dogecoin is at present buying and selling at $0.0937, which locations it squarely inside a help vary between $0.09 and $0.10.
A transfer above $0.10 and into the $0.15 to $0.18 vary could be the primary indication that sentiment round DOGE is starting to enhance. However, the stronger sign would come from a break above $0.25, as that will make it clearer that DOGE is bouncing from the help construction.
Interestingly, the inverted chart’s construction leaves room for a transfer into double-digit worth targets earlier than Dogecoin reaches the subsequent main trendline.
