Market structure shows repeated breakdowns, weak highs, and a potential move toward major liquidity zones as traders watch for confirmation of a larger trend reversal
Dogecoin’s weekly chart suggests increasing bearish pressure as price retreats from a major supply zone and slips below several short-term structure levels. The chart highlights repeated change-of-character (ChoCH) signals, breaks of structure (BOS) and a continued hunt toward deeper liquidity pools. Analysts say the asset is now approaching supports that have historically triggered strong reactions.
Dogecoin Tests Mid-Range Liquidity After Supply Rejection
The weekly structure indicates that Dogecoin faced firm rejection from a high-timeframe supply region around the $0.27–$0.35 band. Price has since broken through short-term bullish attempts, leaving behind a series of weak highs that underline diminishing upward momentum.
BitXJournal technical analyst reviewing the structure explains that “the repeated ChoCH signals across weekly candles show buyers losing control while liquidity continues to be swept on the downside.”
The asset is now trading near the $0.16 region, hovering above a mid-range equilibrium area marked earlier on the chart. The pullback mirrors previous cycles where DOGE tapped into demand before a larger move emerged.
The most critical zone lies between $0.08 and $0.10—highlighted as a multi-year demand block on the chart.
Deeper Demand Zones Hold Major Importance
Price action shows a strong accumulation zone between $0.05 and $0.065, where a “Strong Low” label marks a key support that has held for several years. Market experts believe this zone could act as a major liquidity magnet if current weakness continues.
BitXJournal analyst commented that “weekly compression and BOS patterns suggest that Dogecoin may revisit deeper demand to reset liquidity before any sustainable bullish structure forms.”
The blue zones on the chart underline these areas where historically, long-term buyers have stepped in.
A clean sweep of these lower levels could set the stage for a more meaningful reversal later in the cycle.
Dogecoin remains inside a broader consolidation with bearish momentum dominating the near term. The next reactions around $0.13, $0.10, and $0.08 will determine whether the market finds support or continues deeper into historical demand.
For now, the weekly chart signals caution, with traders closely watching for the next BOS or ChoCH that confirms direction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.