Dogecoin price maintains bearish structure: is a deeper drop on the horizon?

Dogecoin continues to trade within a firmly bearish market structure, though emerging signs of price compression near key support levels suggest that a potential local bottom may be forming. Sellers have maintained control since the rejection of the high-time-frame resistance around $0.21, leaving DOGE unable to generate the momentum or structural shifts required for a sustained recovery.

Dogecoin price key technical points

• DOGE continues to trade within a confirmed bearish structure, marked by persistent lower highs.
• Regional resistance remains firmly intact despite multiple retests.
• Price compression near support hints at early bottoming behavior, but decisive confirmation is still lacking.

Dogecoin’s extended bearish trend began with its rejection at the major resistance zone near $0.21, a level that has repeatedly dictated broader market sentiment. This rejection triggered a prolonged decline characterized by lower lows and lower highs, keeping DOGE constrained within a well-defined downtrend. Efforts to reclaim this zone – or challenge other regional resistance areas – have been met with consistent selling pressure, underscoring the imbalance between bulls and bears.

This pattern has become increasingly pronounced in recent sessions. Each attempt by buyers to break above short-term resistance has faltered due to insufficient volume, highlighting the market’s continued preference for selling into strength. As long as volume expansion fails to materialize at critical inflection points, rallies are likely to be interpreted as corrective moves rather than the start of a meaningful trend reversal.

Despite this structural weakness, DOGE is beginning to exhibit early signs of stabilization. Price action has compressed closer to support, and downside momentum has eased notably – conditions that can precede the formation of a local bottom. When sell-side pressure begins to diminish and liquidity absorption improves, markets often transition into early accumulation phases.

From a structural standpoint, however, Dogecoin remains within a bearish framework. A true shift would require a clear higher low followed by a higher high, supported by expanding volume – a pattern that would indicate the start of a broader trend reversal.

Without such evidence, any upside movement should still be treated as speculative and potentially short-lived. Even so, the current environment shows enough emerging signals to warrant close attention from traders, especially as price tests critical support zones.

What to expect in the coming price action

If Dogecoin manages to hold support while attracting stronger bullish volume, a rotation toward higher resistance levels could develop. However, unless DOGE decisively breaks its bearish structure, the risk of another leg lower remains firmly on the table.