Dogecoin’s bearish pennant hints at further losses | Credit: TradingView
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Key Takeaways
DOGE is down 16% in October, trading near $0.19 after breaking below its ascending channel.
Negative Bull Bear Power and declining Daily Active Addresses (DAA) confirm fading demand,
A break below $0.18 could send DOGE to $0.15, while defending support might trigger a rebound.
Dogecoin’s (DOGE) price appears on track to end October in the red, after sliding 16% since the start of the month.
As of this writing, the memecoin trades around $0.19, struggling to regain momentum following a sharp mid-month sell-off.
With momentum fading, DOGE may struggle to reclaim its previous local high before the month closes.
Several on-chain and technical indicators suggest that buying pressure has weakened.
Here are the key levels to watch and likely targets.
Dogecoin Fails To Crack Key Level
Dogecoin’s price previously traded in an ascending channel on the 4-hour chart. However, as of this writing, that has changed.
From the chart below, DOGE has broken below the channel’s lower trendline, which was around $0.20. This drop implies that bulls did not have enough strength to defend the support.
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Evidence reflected in the Bull Bear Power (BBP). As of this writing, the BBP reading has dropped to the negative region.
This indicates that bears (sellers) are in control. Furthermore, CCN observed that the $0.20 level, which previously acted as support is now a major resistance standing in DOGE’s way.
Should the trend remain the same, Dogecoin’s price might slide below the critical zone at $0.19. Once that happens, the next level to reach could be $0.17.
Besides the technical setup, CCN’s analysis found that Dogecoin’s Daily Active Addresses (DAA) divergence has remained negative.
This metric suggests that fewer unique users are interacting with the network, even as DOGE’s price attempts to stabilize.
A negative DAA divergence points to weakening network participation, which can precede price stagnation or decline if engagement doesn’t recover.
In other words, on-chain data is not yet confirming a bullish reversal, reinforcing the view that Dogecoin’s price may struggle to reclaim its previous local highs.
Looking at the daily chart, Dogecoin’s price appears to have formed a bearish pennant pattern, a setup that signals a continuation of the prior downtrend.
The pattern forms when price consolidates within converging trendlines following a decline, reflecting temporary indecision before potential further downside.
If this structure plays out, DOGE’s price could face additional selling pressure, possibly extending its losses once the price breaks below the pennant’s lower boundary at $0.18.
If that happens, the memecoin might experience a drop below $0.15.
However, if bulls manage to defend the support zone and invalidate the pattern, it could lead to a short-term relief bounce, with possible targets from $0.22.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
