Dogecoin Compresses Below Resistance Showing Signs of a Breakout Toward $0.21

• Dogecoin price is compressed near the long-term trendline as volatility narrows and directional pressure builds.

• Oversold RSI signals seller fatigue, though momentum confirmation remains limited across higher timeframes.

• The Liquidity heatmap shows stop-hunt behavior dominating DOGE price action during range-bound conditions

Dogecoin price sits at a decisive technical zone after months of steady decline. Market structure, momentum data, and liquidity positioning now converge, setting the stage for heightened volatility and a possible directional move.

Dogecoin Price Holds Base as Trendline Pressure Builds

Dogecoin price continues consolidating beneath a descending trendline that has guided lower highs since the October peak. On the 12-hour chart, repeated rejections confirm a persistent bearish structure. Each recovery attempt has stalled under dynamic resistance, reinforcing market caution.

Price compression has intensified around the 0.12 to 0.13 zone, forming a clearly defined horizontal base. This area has absorbed multiple tests, suggesting growing demand and reduced selling pressure. As volatility narrows, market participants anticipate a decisive resolution.

$Doge #Doge Consolidating Under Descending Trendline For The Last Couple Of Months, Now Incase Of Trendline Break, It Can Give Move Towards 0.21$ In Coming, Wait For Clear Breakout pic.twitter.com/PGaRZAWeuN

— World Of Charts (@WorldOfCharts1) December 29, 2025

Technical projections shared by World Of Charts on social media show price tracking closely along the trendline. The analysis suggests a brief pullback could precede expansion. A confirmed close above resistance would shift short-term structure and alter near-term expectations.

RSI Signals Seller Fatigue Without Strong Momentum Shift

The relative strength index remains near oversold territory, hovering around the 28 to 30 range. Historically, similar conditions have preceded relief rallies when the price aligned with channel support. This setup indicates exhaustion rather than aggressive accumulation.

Unlike prior cycle bottoms, RSI has not formed a clear bullish divergence. Momentum remains subdued, reflecting cautious participation rather than strong reversal intent. Throughout 2025, RSI has consistently failed to reclaim the 50 midline, confirming bearish control.

$Doge/weekly#Dogecoin’s MOM (Momentum Indicator) suggests the beginning of an uptrend, even as the price remains in a downtrend.
This increases the likelihood of a $Doge trend reversal from downtrend to uptrend. pic.twitter.com/I1EPcIbxTW

— Trader Tardigrade (@TATrader_Alan) December 29, 2025

Market commentary posted alongside the chart notes sustained RSI compression often precedes short-term rebounds. However, momentum confirmation remains essential. Without follow-through volume, any upside attempt risks rejection near former resistance levels.

Liquidity Zones Drive Volatility and Market Behavior

The DOGE liquidation heatmap explains recent price swings through leveraged positioning. Dense liquidity bands sit below the current price near the 0.121 to 0.123 region. These zones attract price during stop-loss sweeps and forced liquidations.

As predicted, Dogecoin moved up over $0.1255 last night to liquidated over $2M of leveraged shorts. Target now looks to be for $DOGE to drop down to about $0.1216 to take out leveraged longs. pic.twitter.com/mGCFQgVJHH

— KrissPax (@krisspax) December 29, 2025

Recent upward pushes toward 0.129 cleared short-side liquidity before reversing sharply. Price then moved lower to target long-side stops, reflecting classic range manipulation. Thin liquidity above price limits immediate continuation without fresh participation.

Analysts note prolonged horizontal liquidity bands signal rotation rather than trend expansion. Market makers appear to cycle prices between clusters to reset leverage. A controlled sweep followed by stabilization could support a bounce, while rapid continuation would suggest cascading liquidations.