Dogecoin Price Faces Critical Test at $0.128 Support After Breaking Multi-Year Trendline

TLDR:

• Dogecoin broke multi-year ascending trendline that provided reliable support throughout 2024 cycle
• Current support at $0.128 represents last defense before potential 30% decline to $0.090 target
• Ichimoku cloud analysis triggered bearish signals preceding 16% price decline in recent sessions
• Price action shows lower highs and sharp rejections at $0.285 and $0.210 resistance levels

Dogecoin faces a pivotal moment as the cryptocurrency tests crucial support at $0.128 following the breakdown of a multi-year ascending trendline. 

Technical analysts warn that failure to hold this level could send the meme coin toward $0.090, representing an additional 30% decline from current prices. 

Market observers note mounting selling pressure as DOGE struggles to maintain its position after breaking through long-standing support structures.

Technical Breakdown Signals Bearish Shift

The price chart reveals a concerning pattern for Dogecoin holders. A multi-year ascending trendline that served as reliable support throughout 2024 has been decisively broken. 

This trendline connected multiple low points and marked successful bounce areas during previous corrections.  The breach of this critical support level represents a textbook technical breakdown that typically signals a shift in market sentiment from bullish to bearish.

Analyst Ali Charts highlighted the precarious position in recent commentary. The cryptocurrency reached a peak near $0.467 during the 2024 bull run but has since been grinding lower through a series of lower highs. 

Recent price action shows increasing volatility with sharp rejections occurring at the $0.285 and $0.210 resistance zones. These rejections suggest sellers are overwhelming buyers at elevated price levels.

The current support at $0.128 now serves as the last line of defense before a potential deeper correction. Technical indicators point to deteriorating momentum, with the price structure showing consistent weakness. 

If selling pressure continues to build at current levels, the next major support zone sits at $0.090. This would represent a complete retracement of the trendline support and could trigger capitulation from weaker hands in the market.

Multiple Bearish Signals Converge

Beyond the broken trendline, additional technical indicators paint a bearish picture for Dogecoin. Trader Tardigrade noted that the cryptocurrency has triggered bearish signals from Ichimoku cloud analysis. 

The analyst pointed to a Kumo bearish breakout and a strong bearish cross where price fell below the Kijun-sen line beneath the Kumo cloud. Following these precise bearish signals, DOGE tanked approximately 16%, confirming the technical setup.

However, some analysts identify potential counter-trend patterns developing on shorter timeframes. 

Trader Tardigrade observed an inverse head and shoulders pattern forming on the two-hour chart. This pattern features a shallow right shoulder, which could provide temporary relief if validated. 

Nevertheless, such short-term patterns carry less weight when confronting the breakdown of multi-year support structures and prevailing bearish momentum on higher timeframes.

The confluence of technical factors creates a challenging environment for Dogecoin bulls. Lower highs continue to form, momentum indicators show weakness, and the broken trendline support removes a key psychological safety net. 

Unless buyers step in aggressively to defend the $0.128 level, the cryptocurrency appears headed toward the $0.090 target. This represents a critical moment for the medium-term trajectory of the meme coin.