In a newly disclosed four-hour chart of the DOGE/USDT trading pair on Binance, crypto analyst Carlos Garcia Tapia cautions of possible declines for Dogecoin as the weekend trading period approaches. “If the bears breach this pattern, it’ll get grim… particularly with the weekend coming up,” Tapia advises.
Is a Dogecoin Price Plummet Ahead?
His chart shared via X illustrates an ascending wedge structure encountering a confluence of resistance between $0.338 and $0.343, along with a significant support area in the $0.31 range.
The chart emphasizes higher lows (indicated as “LL” on the chart) establishing the lower boundary of an ascending wedge. Simultaneously, overhead resistance (a rectangular area around $0.338–$0.343) has persistently limited upward price movements. This wedge seems to be compressing price actions—often an arrangement for a major breakout or breakdown.
A horizontal resistance zone around $0.34 is prominent. DOGE’s price has made several attempts to briefly ascend above this level but has not managed to achieve a confirmed breakout, indicating that sellers are staunchly defending that area.
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On the downside, a green box covering approximately $0.310 indicates a region where purchasing interest has historically surged. Below this threshold, the chart indicates a lower support level near $0.262, suggesting a more significant possible decline if the wedge structure breaks down decisively.
The analyst particularly highlights the approaching weekend as a wild card. Traditionally, reduced trading volumes on Saturdays and Sundays can intensify volatility. Should Dogecoin fail to maintain its ascending trend line—currently around $0.328–$0.330—and liquidity diminishes, the price could rapidly test the lower support near $0.310, or potentially drop toward the $0.262 area if the selling momentum escalates.
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Although a breakout above $0.343 could negate this bearish setup, Tapia’s warning accentuates the importance of a potential breakdown from the wedge format. Weekend price movements often differ from midweek trends due to diminished activity, suggesting that a sharp move in either direction could occur more swiftly than normal.
DOGE Must Maintain $0.31
The daily chart reinforces Tapia’s argument. There, Dogecoin (DOGE) finds itself under increasing downward strain as price movements cling to a persistent downtrend line. After reaching a local peak in December, DOGE has retreated below crucial exponential moving averages (EMAs). The 20-day EMA (currently around $0.3457) and the 50-day EMA (approximately $0.3473) have both diminished, indicating fading short-term momentum.
A look at the chart shows that DOGE is currently just slightly above the 0.382 Fibonacci retracement level, assessed around $0.313. This Fib region has served as the most critical support since mid-December, but a definitive daily close beneath it could accelerate selling. Traders are closely monitoring the 100-day EMA (around $0.3179), which is positioned just above this Fib level.
If the price cannot uphold the area surrounding $0.313 and $0.317, attention will shift to the 200-day EMA at about $0.2613 as an essential long-term support. Should this level also break to the downside, the 0.236 Fib at $0.212 might quickly come into play.
Featured image created with DALL.E, chart from TradingView.com
