Dogecoin faces renewed downside pressure despite briefly reclaiming a key psychological level. Market structure now points to weakening momentum after a short-lived rally. A bearish setup continues to build, raising concerns of a deeper correction. Current price action suggests sellers are regaining control across lower timeframes.
Bearish Pattern Signals Distribution Phase
Crypto Paradise warned of a potential Dogecoin trap forming after recent price movements. In a TradingView analysis, the analyst explained that DOGE showed a classic Volume Spread Analysis pattern. The structure started with a buying climax, followed by a climactic action bar.
This formation often signals distribution by institutional participants. Aggressive price spikes tend to attract retail buyers. At the same time, larger players use that momentum to exit positions.
Crypto Paradise added that rising confidence among retail traders often aligns with smart money selling. Such behavior increases the risk of a sharp reversal. The warning came as Dogecoin briefly moved above the $0.10 level.
The rally followed Bitcoin’s move past $79,000, which lifted broader market sentiment. However, the bullish move lacked strong continuation. As a result, the setup still supports a bearish outlook.
Key Support and Resistance Levels Shape Dogecoin Price Outlook
Crypto Paradise stated that Dogecoin could drop to around $0.08917 if bearish momentum continues. The price swept the upper trigger line of the buying climax but failed to hold gains.
A breakdown below the lower trigger line confirmed rising supply pressure. This move signals that sellers currently dominate the market. The analysis also showed that DOGE respected a descending resistance trendline.
Repeated rejection from this trendline reflects ongoing structural weakness. Momentum has shifted to the downside across short-term charts. The overall structure remains bearish under current conditions.
DOGE risks further decline while trading within the one-hour order block and fair value gap zone. Immediate support sits near $0.09290, acting as the next downside target. If selling pressure increases, the price may move toward that level quickly.
On the upside, $0.10338 stands as a critical resistance level. A strong momentum candle above this point could invalidate the bearish scenario. Until then, market structure continues to favor further downside movement.
At the time of writing, the Dogecoin price is trading at around $0.09805, down by 0.43% in the last 24 hours.
Source: https://coinpaper.com/16620/dogecoin-price-trap-signals-potential-crash-toward-0-08
