Dogecoin Hits Critical Support Levels Amid Ongoing Downtrend

Dogecoin (DOGE) is facing a critical test of its support levels after breaking below a long-standing trendline in November. The meme coin currently trades at $0.131, down 58% year-over-year and 20% over the past month.

Despite the prolonged downtrend, technical analysts have identified early stabilization signals, suggesting that buyers are stepping in earlier than before to defend key price levels. In early December, DOGE sold off aggressively from $0.136 before probing support multiple times.

The token has started printing higher lows around $0.126, and analyst Crypto Tony has identified the $0.128-$0.130 zone as a critical inflection area that needs to be reclaimed for bulls to make a recovery. The RSI divergence on the 4-hour chart suggests that a turning point may be near.