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Dogecoin is nearing one of the most important price levels on its higher-timeframe chart amid a broader structure that has been developing since 2024.
A TradingView analysis from Cryptollica on Monday highlighted this trend for Dogecoin ($DOGE) as the meme coin’s price sees a slight recovery. After dropping to a low of $0.0776 on June 6, it has rebounded over the past three days to its current price near $0.0865.
However, the analysis highlighted a broader picture, where Dogecoin trades within a multi-month descending wedge on the 3-day timeframe. Despite the recent rebound, the token’s price is also near a key support area, with notable long-term implications.
Dogecoin Tests Area That Previously Triggered Major Rebounds
Cryptollica’s commentary shows $DOGE trading near the $0.075-$0.050 range, a zone that has repeatedly acted as a foundation during previous market cycles. Looking at the accompanying chart, this key support area stands out immediately.
It has served as a long-term floor on multiple occasions since 2022. Each time the price revisited this zone, buyers eventually stepped in and helped establish a base for a larger move higher.
The first instance was in June 2022 when $DOGE dropped to $0.0491. Prices rebounded there to the October 2022 peak near $0.15. A similar event happened in June and October 2023, when the token bottomed at $0.0581 and $0.0568, respectively.
Meanwhile, after spending a lengthy period consolidating near this support in late 2024, $DOGE started a powerful rally that carried the asset toward the cycle’s peak near $0.50 in December 2024. Since this top, the token has entered a downtrend, dropping by 82% to its current price.
The analysis emphasized that what makes the current price trend notable is that $DOGE has now returned to the same support region that helped launch the previous expansion phase.
Descending Wedge Dictates Trend
The chart also shows a clearly defined descending wedge. This structure started forming at the December 2024 peak, compressing $DOGE as it consolidates. The last notable event within the wedge is a rejection at its upper resistance near the $0.30 area in September 2025.
Since failing there, $DOGE has continued to produce lower highs and lower lows, gradually compressing between declining resistance and long-term support. Cryptollica noted that this type of compression often signals that the market is moving toward a larger directional decision.
For one, the longer this compression continues, the more important the eventual breakout or breakdown becomes. Meanwhile, the analyst highlighted two possible scenarios for Dogecoin depending on how it reacts to the current support.
Possible Dogecoin Reactions from Support
He mentioned a bullish scenario where $DOGE continues defending the $0.075 support zone and begins establishing stability above it. If this happens, attention will likely shift toward a retest of the descending trendline that has defined the correction.
Meanwhile, a successful break above that resistance would mark the first meaningful indication that the long-term downtrend is losing strength. The analyst suggested that after clearing that barrier, the $0.30 and $0.50 resistance areas become the next possible targets. This represents a 249% to 481% increase from the current price.
In this case, Cryptollica views the current area as an accumulation zone. He sees recovery momentum building around the support in preparation for the next expansion.
However, breaking the $0.0755-$0.50 support changes everything. It paves the way for a further downtrend to lower prices.
In the meantime, market sentiment remains low, a condition the analyst suggests is usual. After months of downtrend, it is expected that confidence around $DOGE has deteriorated and attention has shifted elsewhere. Nonetheless, he added that this is where “the next important phase starts forming.”