Dogecoin Tests Falling Wedge as Breakout Pressure Builds

DOGE approaches a falling wedge resistance as buyers respond to recent market volatility with renewed activity.

Trading volume rises as DOGE regains earlier levels, signaling interest around a potential breakout zone.

Analysts track the 12-hour structure while social sentiment notes a possible shift after strong price compression.

Dogecoin enters a decisive phase as recent chart activity places the asset near a key falling wedge boundary. Market participants monitor shifting momentum after a volatile week that produced both sharp losses and a fast technical recovery.

Falling Wedge Structure Near Breakout Point

Dogecoin’s price formation on the 12-hour chart shows a maturing falling wedge that has guided price action for several weeks. The structure has produced consistent lower highs and lower lows, forming a narrowing zone. This setup now places DOGE near its upper boundary.

The market recorded repeated tests of this resistance line. Each attempt lacked the strength to close above the trendline. Recent candles now show tighter compression near the same area, suggesting that traders are awaiting a decisive move. Price response near this zone appears more deliberate than earlier attempts.

Clifton Fx stated that DOGE is “trying to break the falling wedge” and noted the need for a momentum candle to confirm the move. That comment aligns with the current chart behavior, as DOGE trades near levels where trend shifts often begin. A breakout candle remains the key factor.

Price Recovery After Sharp Weekly Decline

The weekly chart action shows DOGE trading around $0.1504 after recovering from a decline early in the week. The asset dropped near $0.135 during the December 1–2 session, marking the week’s lowest point. That move reflected broader pressure across the market.

Source: coinmarketcap

After reaching that low, DOGE staged a fast V-shaped recovery. This move returned the asset to levels seen at the start of the period. Such rebounds often appear when short-term selling pressure fades, opening paths for reactive buying.

The recovery coincided with increased activity. Trading volume rose to $1.75 billion, up more than 36%. Market cap reached $22.86 billion, with circulating supply at 152.02 billion DOGE. These figures place DOGE within its usual liquidity zone during volatile stretches.

Market Sentiment and Analyst Expectations

Social sentiment continues to influence DOGE’s movement. A post from BlockNews questioned whether DOGE can recover after an 8% daily loss and a multi-month distribution phase. That discussion reflects attention on broader positioning trends rather than short-term signals.

Engagement around the topic shows that traders remain focused on the wedge structure and its possible resolution. Activity on social platforms often increases when DOGE approaches technical inflection levels. The current compression adds interest to the developing scenario.

If traders receive the momentum candle described by Clifton Fx, the next zone may include the $0.145–$0.150 liquidity band. If momentum fades, another test of the wedge base remains possible. Both outcomes keep the structure relevant as the market approaches its next move.

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