Dogecoin (DOGE) Price: Descending Wedge the Runway for Next Price Takeoff?

TLDR

Dogecoin is currently trading around $0.21 after a 25% surge over the past two weeks DOGE facing resistance at $0.2250 level with support forming at $0.220 Technical analysts have identified bullish patterns including a descending wedge and bull flag Key resistance levels at $0.2320 and $0.2380 could determine future price movement Retail trading activity spikes historically coincide with local price tops, raising sustainability concerns

 

---

Dogecoin (DOGE) is currently trading around $0.21, following an impressive surge of over 25% in the past two weeks. Despite this uptrend, the popular meme cryptocurrency has entered a cooling period in recent days, with traders closely monitoring key support and resistance levels.

DOGE started a fresh increase and climbed above the $0.2320 zone, but encountered strong selling pressure near the $0.2380 level. A high was formed at $0.2378 before the price began correcting downward.

The cryptocurrency is now trading just below the $0.2250 level and the 100-hourly simple moving average. Market observers have noted a connecting bullish trend line forming with support at $0.220 on the hourly chart of the DOGE/USD pair.

Technical analysts have spotted several interesting patterns on Dogecoin’s charts. Trader Edge has identified a descending wedge, a typical bullish reversal pattern that could support a 15% price increase if confirmed.

Dogecoin $DOGE trading in a bullish falling wedge pattern

A confirmed breakout could lead to a push towards the resistance zone around $0.30 📈

$0.20 is a key level of support if we get a deeper correction 🟢 pic.twitter.com/tlDvWyfSLM

— Trader Edge (@Pro_Trader_Edge) May 18, 2025

Meanwhile, cryptocurrency enthusiast Carl Moon has observed a bullish flag pattern on DOGE’s 4-hour chart. “Once it breaks through this bullish flag, the target will be $0.29,” Moon stated, suggesting a potential increase of nearly 30% from current levels.

Retail Trading Behavior Raises Questions

Despite the positive technical outlook, some analysts remain cautious. CryptoQuant contributor Burak Kesmeci highlighted concerning trends in DOGE’s futures market activity in his study titled “Too Many Retail Traders? DOGE Futures Show Repeated Peak Patterns.”

Kesmeci’s data indicates that historically, spikes in retail trading engagement have coincided with local price tops, typically preceding short-term declines. This pattern raises questions about the sustainability of the current rally if it is primarily driven by speculative retail trading rather than fundamental strength.

For traders monitoring Dogecoin’s next move, immediate resistance lies near the $0.2250 level. The first major resistance for the bulls could be near the $0.2320 level, followed by $0.2380.

Dogecoin (DOGE) Price

If DOGE manages to break above these resistance levels, it could target the $0.250 mark. Further gains might push the price toward $0.2720, with the next major stop for bulls potentially at $0.2850.

On the downside, initial support can be found near the $0.220 level. The next major support is around $0.2170. The main support sits at $0.2120, and a break below this level could send the price toward $0.20 or even $0.1880.

Technical indicators are showing mixed signals. The Hourly RSI (Relative Strength Index) for DOGE/USD has dropped below the 50 mark, indicating somewhat declining momentum. At the same time, the Hourly MACD (Moving Average Convergence Divergence) is gaining momentum in the bearish zone.

However, crypto expert Javon Marks offers a more optimistic long-term outlook. Marks recently revealed that DOGE “has confirmed a major bullish signal on its chart,” suggesting that another leg of upward momentum could be developing.

Price Levels to Watch

Traders should pay close attention to several key price levels that will likely determine Dogecoin’s near-term direction:

The most critical immediate resistance is at $0.2250, followed by $0.2320 and $0.2380. If bullish momentum continues, extended targets include $0.250, $0.2720, and $0.2850.

Support levels include $0.220, $0.2170, and the critical $0.2120 level. If these supports fail to hold, DOGE could test lower levels at $0.20 and $0.1880.

As Dogecoin negotiates this inflection point, the market appears divided between long-term optimism and short-term caution. The cryptocurrency’s ability to break above the $0.230 resistance zone will likely determine its immediate future and potentially trigger the positive scenarios outlined by technical analysts.

Traders should remain aware of retail trading patterns and volume confirmations, as substantial follow-through volume typically ensures greater reliability from breakouts of wedge and flag formations.

If DOGE fails to clear the $0.2320 resistance level, it might continue its consolidation phase or potentially test lower support levels. The price action in the coming days will be crucial for determining whether Dogecoin can sustain its recovery or faces further correction.

The post Dogecoin (DOGE) Price: Descending Wedge the Runway for Next Price Takeoff? appeared first on CoinCentral.