Dogecoin has returned to a major long-term level on the monthly chart, setting up another important test for the meme coin after months of weak price action. The cryptocurrency dropped 8% over the last three days and currently trades between $0.09 and $0.10, according to crypto analyst Trader Tardigrade.
Tardigrade identified the resistance level using an inverted price scale on the monthly chart. On an inverted chart, lower chart movements represent higher actual Dogecoin prices. The resistance sits within a descending broadening channel defined by two red trendlines that have shaped Dogecoin price action over more than a decade.
Dogecoin has tested this same overhead structure twice before. In 2017 and again in 2020, the meme coin rallied into the upper resistance of the descending broadening channel, only to face rejection. Both rejections were followed by large rallies upward on the normal Dogecoin chart.
“This is where we dump Dogecoin,” Tardigrade said, marking the critical juncture where the pattern has repeatedly reversed price direction.
The inverted chart structure leaves room for a move into double-digit price targets before Dogecoin reaches the next major trendline, according to Tardigrade’s analysis. The analyst identified two key price levels to watch. A move into the $0.15 to $0.18 range would represent the first indication of sentiment improvement. A stronger signal for bounce confirmation would come at $0.25.
The descending broadening channel represents a long-term pattern of widening price swings. Each rejection from the upper trendline has preceded multi-month rallies in Dogecoin’s history. The current test marks the third time in over a decade that Dogecoin has returned to this critical overhead resistance.
Dogecoin currently trades at $0.0937. The support range of $0.09 to $0.10 holds the immediate floor for the meme coin as traders and analysts monitor whether the pattern will repeat once again.
