Dogecoin price nears breaking point as price action tightens within a bearish pattern

Dogecoin is at a critical juncture as DOGE price hovers just above key support within a descending triangle, with bearish momentum suggesting a potential breakdown to $0.145.

Dogecoin (DOGE) price has formed a descending triangle pattern on the daily chart, with price action compressing toward the apex. The descending triangle is a bearish continuation pattern and it has formed in a broader downtrend as evident by the price trading well below 200 SMA (~$0.248).

The relatively flat immediate horizontal support zone is around $0.165–$0.17. The price has bounced several times from this support and is currently retesting it again, with small-bodied candles forming just above it, confluent with a broader support zone defined by the lower boundary of the descending triangle.

This means that Dogecoin price is nearing a potential breaking point. A break below this support would confirm a bearish breakdown from the descending triangle pattern, potentially triggering increased selling pressure.

If the memecoin‘s price closes below the $0.165 level, it could open the door for a move toward the next significant support around $0.145, as defined by the previous demand zone within the triangle.

However, as long as the $0.165–$0.17 zone holds, there’s still a chance for a range-bound bounce. That said, the broader bias remains bearish unless the descending triangle pattern is invalidated by a breakout above the descending trendline resistance with a daily close above it.

From an indicators standpoint, the bearish scenario appears more likely at this stage. The price is trading well below both short-term 20-day EMA and long-term 200-day SMA, both of which are trending downward. RSI hovers around 36, approaching oversold levels. The MACD also remains in negative territory, with the signal line above the MACD line and no bullish crossover in sight.