[ad_1]
Dogecoin’s latest attempt to break higher has turned into a rejection at a technically important level, putting the memecoin back on watch for a retest of lower support. Crypto analyst Ali Martinez, posting to X under the handle @alicharts, said DOGE’s failed move above descending triangle resistance on the 12-hour chart shifts attention back to $0.088.
Dogecoin Bulls Lose Momentum After Failed Breakout
Martinez framed the move as a false breakout rather than the start of a trend reversal. In his latest post, he wrote: “DOGE had a clear fakeout yesterday as it attempted to break out of a descending triangle on the 12-hour chart. The descending trendline held firm as resistance, immediately rejecting the price. When a breakout fails this sharply, the market usually looks for liquidity at the bottom of the structure.”
That reading matters because the setup had already been approaching a decision point. In a video shared two days earlier, Martinez said Dogecoin had been compressing inside the descending triangle for roughly two months, with price action tightening toward the apex. As that happens, the probability of a larger directional move tends to rise, making the surrounding levels more consequential than usual.
Related Reading
His framework was straightforward. A clean break above resistance near $0.095, he said, could open the way for a move toward $0.14. But the opposite side of the range was just as important. “Breaking past resistance at $0.095 could result in a rally to $0.14. However, losing $0.088 as support could result in a move to $0.07,” Martinez said.
The failed breakout appears to have invalidated the bullish case, at least for now. Rather than building acceptance above the descending trendline, DOGE was rejected back into the structure, suggesting buyers were unable to absorb supply at the breakout point. In Martinez’s view, that leaves the lower boundary of the triangle as the next likely destination.
Related Reading
He described that level in unusually definitive terms. “We are now likely heading for a retest of the triangle’s floor (the X-axis) at $0.088. This is the definitive line in the sand. If it holds, we reset and try again. If it breaks, the bears take control.”
That distinction between a reset and a breakdown is the core of the setup. A successful hold at $0.088 would preserve the broader compression pattern and leave open the possibility of another attempt at the upper trendline. A loss of that floor, by contrast, would confirm that the failed breakout was not just a local rejection but a sign of weakening structure, with Martinez pointing to $0.07 as the next downside target.
For now, the chart has moved from breakout anticipation to support defense. The earlier bullish trigger at $0.095 remains relevant, but only if DOGE can first stabilize above the base of the triangle. Until then, the market’s focus has narrowed to one price: $0.088.
At press time, DOGE traded at $0.09684.
Featured image created with DALL.E, chart from TradingView.com
[ad_2]
Source link
