Dogecoin Price Just Entered A Critical Level, But Analyst Says It’s Not Time To Buy

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Dogecoin has returned to a significant long-term degree on the month-to-month chart, organising one other essential check for the meme coin after months of weak worth motion. 

The setup was initially famous by crypto analyst Dealer Tardigrade on X, who argued that DOGE is now sitting at a vital resistance zone the place earlier rallies have failed. Dogecoin has visited this worth zone solely twice prior to now decade, and every go to ended the identical method. 

The Sample That Has Outlined DOGE Since 2015

Dealer Tardigrade’s long-term Dogecoin chart reveals DOGE buying and selling inside an enormous 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 purple trendlines that widen progressively as time passes.

As proven within the chart beneath, Dogecoin beforehand rallied into the higher resistance of this channel in 2017 and in 2020, and each strikes ended with robust 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 Dealer Tardigrade, that is the place we dump Dogecoin.

Dogecoin has already dropped by 8% during the last three days, a decline that got here shortly after DOGE examined that main resistance space, making the sample a robust warning.

Actual Message Behind The Inverted Chart

Dealer Tardigrade’s chart presents DOGE/USD on the month-to-month timeframe, however the worth scale is flipped. This implies the decrease the chart strikes, the upper Dogecoin is definitely transferring in regular market worth. Subsequently, the purple descending line labeled as vital resistance is not a bearish ceiling within the typical sense, however a bullish line on an inverted chart, and a rejection from it sends the worth straight 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 traditional DOGE chart. 

Subsequently, the present worth motion must be checked out as a return to assist as a substitute, and the analyst is anticipating a bounce to larger worth ranges. Dogecoin is at present buying and selling at $0.0937, which locations it squarely inside a assist 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. Nevertheless, the stronger sign would come from a break above $0.25, as that may make it clearer that DOGE is bouncing from the assist construction.

Apparently, the inverted chart’s construction leaves room for a transfer into double-digit worth targets earlier than Dogecoin reaches the following main trendline.

Featured picture from Getty Pictures, chart from Tradingview.com

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