Dogecoin’s Downward Trend Continues as Descending Resistance Line Caps Every Rally Attempt
Dogecoin is trading below a firm descending resistance line, with repeated failed rallies, bearish momentum and extreme fears setting a continuation of the downward move as the base case.
According to technical analysis, Dogecoin extended its decline after another rejection at a descending resistance line. The cryptocurrency has been trading below a sustained descending resistance trendline, with chart patterns showing compressed low-high rallies indicating continued bearish pressure. Every rally attempt since the middle of the month has peaked at progressively lower levels against the declining resistance band.
Key Indicators and Trends
Price is well below key moving averages, with lower highs, continued bearish momentum and increased volatility signaling trend deterioration. Any rise into the descending resistance line is met with strong selling, with volume spikes and long upper wicks confirming sellers’ control. Analysts say only a decisive breakout above the resistance band would challenge the bearish continuation scenario and the forecast lower target zone.
Market data shows that momentum indicators are trending neutral to bearish, with the moving averages showing a large gap, indicating continued trend deterioration. Volatility remains high and sentiment is pessimistic. Only a minority of recent trading days have been positive, suggesting that a stable upward move is difficult to establish. According to the data, the price is well below the two major moving averages with trend momentum remaining negative.
Technical Breakdown and Analysis
TradingView chart analysis shows a downward trending structure in the last trading window. After a brief surge towards higher levels, Dogecoin failed to stabilize and fell back to its previous range. Volume spikes confirm sellers have intervened on every upside attempt, with stretched wicks near highs illustrating how quickly rallies have reversed, according to the technical breakdown.
According to analysts, the descending resistance line represents the crucial level. A breakout above it would be the first sign of a change of control. Further rejection, as the structure currently suggests, would reinforce the continuation of the downtrend and could send Dogecoin towards its forecast target range. The analysis concluded that given the extreme fear in the market and ongoing compressed rallies, Dogecoin remains vulnerable until buyers reclaim stronger terrain.
For more information and the latest updates on Dogecoin’s price movements, visit https://crypto.news/dogecoin-extends-decline-as-descending-resistance-line-caps-every-rally-attempt/
