Dogecoin stabilized near $0.101 on Thursday after rebounding from a one-month low of $0.097, closing out a 2.4% weekly decline. The token's price action has formed a textbook falling wedge pattern since early May, signaling potential upside as traders watch critical support at the 50-day moving average.
Falling Wedge Formation
Trader Tardigrade identified the falling wedge structure on Dogecoin's daily chart, describing it as a reliable bullish reversal pattern. Historical data shows similar formations preceded massive rallies in 2017 and 2021 after extended base-building periods. The current pattern suggests Dogecoin could break toward May's highs if momentum shifts upward.
Channel Boundaries Define Range
Ali Martinez noted Dogecoin has traded within a tight $0.088 to $0.115 parallel channel for three months. The 50-day simple moving average at $0.102 now acts as pivotal support following the recent dip. Any failure to hold this level could send price toward the channel's lower boundary.
Support Level Crucial for Direction
Current trading between $0.100 and $0.105 places Dogecoin directly at the make-or-break point for the weekly trend. Holding above $0.102 would likely trigger a rebound toward the channel's upper resistance. A break below could accelerate selling toward $0.088, where the token found footing earlier this month.
The next decisive move should unfold within days as the falling wedge pattern matures. Traders are watching whether price can sustain above $0.102 to confirm upward momentum toward the $0.115 resistance level.
