Dogecoin Approaches Multi-Year Compression Breakout-Is a Major Move Brewing?

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Ah, Dogecoin. What a curious creature of the market. It now finds itself at a decisive moment, as it scrambles inside a multi-year descending wedge. After months of wallowing in the murk of lower highs, this asset is now testing the waters of a key macro support zone-$0.065 to $0.08. Oh, how lovely. In the past 24 hours, the price has surged by a mere 5.16%, reaching the remarkable figure of $0.098. Truly, a triumph! Trading volume has experienced a 113% increase, now reaching $1.84 billion. I’m sure someone is dancing in their chair right about now.

And then, the pièce de résistance: A short squeeze worth $4.09 million in DOGE shorts liquidated! This surely amplified the glorious 113% spike. With volatility tightening and the price inching ever closer to the apex of this wedge, we stand on the precipice of a dramatic, life-altering move. Or maybe not. Who knows?

Weekly Support Near $0.08 Remains Intact

That $0.065-$0.08 region-what a stubborn support zone! It has acted as a fortress for Dogecoin over the past cycle, despite the relentless tide of corrective pressure. Sellers, poor souls, have tried their best to force a sustained breakdown, but to no avail. As long as this support holds, Dogecoin retains the structural possibility of an upside move, a dream that could come true, or might not-who’s keeping track? But should the weekly close dip below $0.065, the story is over, my friends. The compression thesis dies, and deeper downside is on the horizon.

Looking at the weekly chart, we find a lovely descending resistance trendline, stretching all the way from the 2024 highs. Dogecoin has been a faithful servant, forming lower highs against this mighty barrier. For a confirmed breakout, DOGE must muster the strength to break above this trendline and reclaim $0.1315 as support. If it can muster that, a march toward $0.2343 could be possible. But then again, who knows? We all could be wrong.

Bollinger Bands on the weekly timeframe are tightening, as if the market itself is preparing for a grand, dramatic move. Historically, these compression phases do precede sharp directional moves. Meanwhile, the weekly RSI sits comfortably in the mid-30s, suggesting that momentum is weak, but not quite dead. Dogecoin is stabilizing-perhaps waiting for its moment to leap, or perhaps just sitting there like a dog waiting for its next meal. Classic high-risk, high-reward territory.

Dogecoin Price Prediction: What Happens Next?

Should the price break above the descending resistance, expect an acceleration toward $0.13. From there, $0.23 is the next stop. In the best-case scenario-under strong market conditions, no less-Dogecoin might just reach the lofty heights of $0.50-$0.55. But let’s not get carried away. Failure to hold the $0.065-$0.08 support, though, will invalidate this whole “wedge” structure and likely extend the broader downtrend. So much for optimism, eh?

As of now, Dogecoin is not in a confirmed breakout. No, not yet. It remains trapped inside a multi-year corrective structure. But with weekly support intact and volatility tightening, it demands attention. So, what happens next? Will the resistance finally give way? Or will support falter? Stay tuned. Or don’t. It’s really up to you.

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2026-02-26 14:36