Dogecoin Eyes Major Breakout: Will $0.12 Hold or Trigger Deep Sell-Off?

• Dogecoin’s weekly chart shows a familiar compression-to-breakout pattern highlighted by Trader Tardigrade, but signals remain mixed.
• Volume behavior through OBV suggests long-term accumulation beneath the surface despite recent price weakness.
• Price staying below major weekly moving averages keeps broader risk tilted to the downside for now.

Dogecoin has once again moved into focus after Trader Tardigrade pointed out that the DOGE weekly chart appears to be repeating a past structure.

The setup highlights a long period of tight price movement followed by sharp expansion, a pattern that has historically preceded strong directional moves. While parts of the chart support this idea, other indicators suggest caution remains necessary.

On the DOGE/USDT weekly chart, the price remained in a range and moving downward for the better part of 2024 and early 2025. The upward movements could not break out and registered a series of lower highs, while the lower movements could not go beyond the support zone of $0.12 to $0.14.

A breakout above the downtrend line marked an important change for Dogecoin. Positive weekly candles indicated that sellers testing resistance were met with absorption.

Trading on the weekly chart holds higher significance since it represents long-term market sentiment. Trader Tardigrade highlighted previous instances in DOGE, with extended ranges followed by strong bullish reversals.

Source: X

However, On-Balance Volume is an important addition to this chart. When the period of consolidation took place, OBV didn’t decline with the price. Rather, it made a base with increasing lows, indicating that the coins were being purchased despite the prevailing low price.

The divergence of OBV from the price pattern tends to happen prior to major breakouts in prices. Since there is no supply above when a particular price undergoes a major breakout, prices increase rapidly.

Also Read: Dogecoin (DOGE) Stabilizes at $0.10 Eyes Potential Rally Toward $0.16

Dogecoin Trades Below Key Weekly Moving Averages

The weekly chart for DOGE/USD depicts a cautious outlook. The price is currently at $0.127 and is below all the 20-MA, 50-MA, 100-MA, and 200-MA EMAs.

The 20-week EMA at $0.176 and the 50-week EMA at $0.194 continue to move lower and thus provide a tough resistance point. The fall below the 200-MA at $0.155 has turned the overall trend negative.

Source: Tradingview

Dogecoin is continuing to decline from the highs of approximately $0.45-$0.48, forming lower highs and lower lows. Again, large sellings are being followed by a few bounces. Unless this is above $0.15-$0.16, any halting in this decline will be temporary.

The level of support is at $0.12, and then comes a critical $0.10; above this, a drop to $0.08-$0.07 may be expected.

There is a lack of momentum with an RSI around 36 for this week, and a negative MACD indicator, indicating that a stronger signal is needed in order for a change in the trend.

Source: Tradingview

Also Read: Dogecoin Price Action Hints at Pre-Bull Run Setup – Key Support $0.113