Dogecoin (DOGE) Price Action Reaches a Point of Great Importance

The price action of Dogecoin has reached a point of great importance where it is encountering a red descending trend line

The price action of Dogecoin (CRYPTO: DOGE) has reached a point of great importance, encountering a red descending trend line—a strong level that has acted as support in the past.

This aligns with historical data from last September, where DOGE rebounded from the same structure, a fact highlighted by crypto analyst Master Kenobi in a recent post on X.

Two Major Levels Of Support

The chart shown by Master Kenobi establishes two major support levels—one dynamic and one static. Firstly, the red trend line has controlled price action for the past few months. Secondly, a yellow horizontal support around $0.0900 serves as a failsafe if the red line is broken.

Currently, DOGE’s price is trading close to the red trend line, which suggests a bounce if history is to repeat itself. However, bearish momentum is still present, as price action has continued to make lower highs and lower lows.

The fact that the Master Indicator is at the bottom of the chart shows that Dogecoin could be nearing an oversold situation, which could lead to buyers moving in.

If this trend line is broken, DOGE will likely test the $0.0900 support, and a breakdown below this may trigger a run to $0.0800 or lower.

“See you another time.”Master Indicator at the bottom of the chart shows that we're nearing an oversold situation, which could lead to buyers moving in.

If this trend line is broken, yellow support at 0.0900 will be tested. A breakdown below this may trigger a run to 0.0800 or lower.

If the yellow support level at 0.0900 kicks in, it will be interesting to see how the market responds. Holding above this point could usher in a period of sideways movement, but a break below could indicate additional losses.

Dogecoin Eyes $0.1100–$0.1200 If Trend Line Holds

A bullish scenario would involve Dogecoin bouncing off the red trend line, with a push into the $0.1100–$0.1200 area. This would open the door to a broader reversal, where DOGE can take out lower highs and reverse momentum in favor of buyers.

However, if the red trend line is broken, the yellow support at $0.0900 is the last line of defense. Falling below both can trigger a long-term downtrend, as Master Kenobi’s “see you another time” phrase suggests.

To add to that, another trader opines that the market structure of Dogecoin has changed to an uptrend, making higher highs and higher lows.

If DOGE holds above $0.178, we can expect new highs. If it falls below $0.164, the current uptrend will be negated, and DOGE will have to regain strength before attempting the resistance again.