Bearish Pattern Puts DOGE At Risk Of Sharp Drop

Dogecoin (DOGE) may be approaching a critical decision point after a bearish technical pattern emerged on the 4-hour chart in the form of a bearish rising wedge, a setup that often precedes downside continuation when it breaks.

In a chart shared in an X post on December 23, popular cryptocurrency trading expert Trader Tardigrade highlighted that Dogecoin has already shown signs of a breakdown from the rising wedge structure, putting the meme coin at risk of a move back toward the $0.12 level if selling pressure continues.

Why The Rising Wedge Matters

A rising wedge forms when price makes higher highs and higher lows within converging trendlines, signaling weakening upside momentum despite apparent upward movement. In DOGE’s case, the structure developed after a rebound, suggesting buyers were losing strength as the price pushed higher.

The breakdown zone aligns with a key resistance area near $0.135, which Trader Tardigrade identified as the invalidation level. As long as Dogecoin remains below that threshold, the bearish scenario stays in play. Failure to reclaim and hold above $0.135 increases the probability of further downside, with $0.12 acting as the next major technical target.

This level has previously attracted buyers and could serve as a short-term demand zone if the price revisits it.

Currently, DOGE is changing hands at $0.1302, down 1.31% on the day, up 1.11% across the week, and accumulating a loss of 9.24% on its monthly chart, according to the most recent price data.

Invalidation Still On The Table

Despite the bearish setup, the outlook isn’t locked in. Trader Tardigrade noted that if DOGE manages to stay above $0.135, the rising wedge breakdown would be invalidated. In that scenario, Dogecoin could attempt a recovery move, potentially catching late bears off guard.

For now, however, the structure favors caution. Rising wedges often trap optimistic buyers near local highs before reversing sharply, especially when broader market momentum is uncertain. As Dogecoin trades near the edge of this pattern, the next few sessions may determine whether the meme coin stabilizes or slides back toward $0.12 as the chart suggests.

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