Dogecoin has entered a phase of consolidation after declining from its recent rejection at $0.12 resistance. The cryptocurrency lost key market structure levels during the pullback, including the point of control and value area low. Price has now reached the $0.11 swing low, where early signs of demand are emerging.
The current price action suggests a potential swing failure pattern may be developing. This technical setup occurs when the price briefly breaks below a key support level but fails to maintain acceptance. Instead of continuing lower, the asset reclaims the broken level on a closing basis. Such patterns often indicate that sell-side liquidity has been absorbed rather than marking the start of a sustained downtrend.
Wicks below the $0.11 level show that stop losses were triggered. However, the lack of follow-through selling pressure indicates larger market participants may be accumulating positions. Dogecoin has closed above this swing low multiple times, preventing a breakdown in market structure.
Technical Breakdown and Volume Analysis
The rejection from $0.12 marked a clear shift in short-term momentum. Traders who entered positions at higher levels were forced to exit as support zones failed. This accelerated the decline toward $0.11, where historical demand has previously emerged.
Volume patterns during the decline show typical characteristics of a liquidation move. Sellers dominated as the price broke through intermediate support levels. The current consolidation at $0.11 shows reduced selling pressure compared to the initial breakdown.
For the swing failure pattern to be confirmed, Dogecoin needs to demonstrate sustained acceptance above $0.11. Expanding bullish volume would strengthen the case for a relief bounce. Without this confirmation, the pattern remains speculative rather than actionable.
Resistance Levels and Structural Concerns
Even if Dogecoin bounces from its current levels, the path higher faces significant obstacles. The $0.12 resistance zone remains the primary target for any recovery. This level has capped multiple upside attempts and represents a concentration of supply.
A sustained break above $0.12 would improve the technical outlook materially. Until that occurs, rallies should be treated as corrective moves within a broader trading range. The cryptocurrency has not established higher highs or reclaimed value area levels that would suggest improving market structure.
The point of control, which Dogecoin lost during the recent decline, sits between the current price and the $0.12 resistance. At the time of writing, Dogecoin trades at around $0.1143, down 0.27% in the last 24 hours.
Source: https://coinpaper.com/14188/doge-price-analysis-critical-0-11-level-shows-signs-of-demand
