Dogecoin has been trading within a well-defined descending channel since early February respecting both trendline resistance and support Despite recent bullish momentum price action remains confined under a major trendline indicating the bearish structure is still intact
Key Observations:
Trend Price continues to form lower highs and lower lows within a downward channel
Change of Character (ChoCH) Previous minor bullish shifts failed to sustain reinforcing bearish dominance
Resistance: A significant resistance zone sits around $0.204 aligned with previous highs and the upper boundary of the channel
Liquidity Zone: There's visible liquidity resting around $0.183 which may attract price for a stop-hunt or fakeout before a potential drop
Current Structure The price is testing trendline resistance suggesting a potential rejection setup
Support Target: If rejection occurs bears may aim for the $0.09 support zone aligning with the channel’s lower boundary
Scenarios
Bearish Case (primary) Rejection from trendline and liquidity zone could trigger a drop toward $0.12 then potentially to $0.09
Bullish Invalidator A clear breakout and hold above $0.204 would challenge the bearish narrative
This setup offers a clean risk-reward opportunity for traders watching for a rejection confirmation As always manage risk and wait for proper confirmation
Key Observations:
Trend Price continues to form lower highs and lower lows within a downward channel
Change of Character (ChoCH) Previous minor bullish shifts failed to sustain reinforcing bearish dominance
Resistance: A significant resistance zone sits around $0.204 aligned with previous highs and the upper boundary of the channel
Liquidity Zone: There's visible liquidity resting around $0.183 which may attract price for a stop-hunt or fakeout before a potential drop
Current Structure The price is testing trendline resistance suggesting a potential rejection setup
Support Target: If rejection occurs bears may aim for the $0.09 support zone aligning with the channel’s lower boundary
Scenarios
Bearish Case (primary) Rejection from trendline and liquidity zone could trigger a drop toward $0.12 then potentially to $0.09
Bullish Invalidator A clear breakout and hold above $0.204 would challenge the bearish narrative
This setup offers a clean risk-reward opportunity for traders watching for a rejection confirmation As always manage risk and wait for proper confirmation
Trade active
Note
new trade You can plan a short from here liquidity zone!
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.