DOGE Tests Critical Support Level After Breaking 763-Day Trendline

Dogecoin (DOGE) is testing critical support around $0.13 after breaking below a 763-day diagonal support trendline in November.

The meme coin currently trades at $0.131, down 58% year-over-year and 20% over the past month.

Technical analysts identify early stabilization signals despite the prolonged downtrend.

Short-term selling pressure appears to be moderating as buyers defend key price levels.

What Happened

DOGE sold off aggressively from $0.136 in early December before probing support multiple times.

Price briefly dipped below $0.124 to sweep liquidity before recovering.

The token has started printing higher lows around $0.126, suggesting buyers are stepping in earlier than before.

Analyst Crypto Tony identified the $0.128-$0.130 zone as a critical inflection area.

This region previously capped price action, making reclaiming it essential for bulls.

RSI divergence has formed on the 4-hour chart, with the indicator making higher lows while price continued grinding lower from above $0.140.

This disconnect often appears near turning points following prolonged downside pressure.

Selling spikes are getting smaller and less aggressive, suggesting distribution may be fading.

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Dogecoin's break below its 763-day support trendline in November raised concerns the bull cycle has ended.

The weekly chart shows neither RSI nor MACD generating bullish divergence, making rebounds less likely.

Technical analysts warn a close below $0.130 could trigger a 25% crash to $0.095.

If buyers reclaim the $0.128-$0.130 zone, DOGE could attempt recovery toward $0.135 and potentially $0.140.

A confirmed break above recent swing highs near $0.132 would help validate the momentum shift.

Failure to hold current support levels brings $0.105 and $0.095 into play as next downside targets.

Daily charts show DOGE trading inside a descending parallel channel, continuously making new lows.

Price fell below the channel's midline, increasing the likelihood of further declines toward the support trendline at $0.105.

The broader cryptocurrency market remains under pressure, with Bitcoin trading around $97,000 after recent volatility.

Dogecoin faces additional headwinds from declining memecoin sector momentum compared to late 2024 peaks.

Trading volume remains elevated at $1.99 billion over 24 hours, suggesting continued market participation despite price weakness.

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