Crypto analyst Erick Crypto has pointed out that Dogecoin’s price is undergoing a squeeze, outlining two potential outcomes for the leading meme coin.
In a post on X, Erick noted that DOGE is experiencing a strong squeeze within a descending triangle pattern, with key support around $0.136. He explained that the price is compressing near the triangle’s apex, signaling that a breakout or breakdown is likely soon, and warned of increased volatility ahead.
According to his analysis, if Dogecoin loses the $0.13 support level, it could face further declines. Conversely, breaking above the trendline could trigger a relief rally. He advised traders to focus on the breakout rather than short-term market noise.
This assessment comes during a broader crypto market downturn, which has already pushed DOGE down more than 20% over the past month—around the time Bitcoin first fell below the key $100,000 mark. Despite the recent launch of two Dogecoin ETFs, interest has remained muted, and the ETFs have underperformed so far.
Further pressure could come from the Bank of Japan, which is expected to raise interest rates this week. Such a move could tighten market liquidity and unwind the yen carry trade, potentially negatively impacting crypto assets like DOGE.
Another analyst, CryptoCeek, described Dogecoin as at a “classic meme coin fork-in-the-road.” If bears push and hold the price below $0.13, a retest of $0.10 becomes likely—a level where buyers have historically stepped in. On the flip side, reclaiming the 20-day EMA near $0.14 could signal a bear trap and open the door for a rally toward $0.19.
Analyst Master suggested that DOGE could trade between $0.08 and $0.10, possibly moving sideways until the next bull run around 2028. Still, as CryptoCeek noted, a bounce from around $0.10 remains possible if bulls begin accumulating at that level.
Frequently Asked Questions
Dogecoin Price Squeeze FAQs
Beginner Questions
What does it mean when Dogecoins price is in a squeeze
A price squeeze means Dogecoin is trading in a very narrow range with low volatility The price is being squeezed between converging support and resistance levels which typically signals a big move is coming soon
Is a price squeeze good or bad for Dogecoin
Its neutralit just indicates that a significant price movement is likely The direction depends on which way the price breaks out of the squeeze
How can I identify a price squeeze on a chart
Look for a period where the price candles get smaller and move sideways often with converging trend lines or between two horizontal lines
What are the two potential paths forward mentioned
The two paths are a breakout or a breakdown once the squeeze period ends
Should I buy Dogecoin during a squeeze
Its generally riskier to buy during a squeeze because the direction is uncertain Many traders wait for a confirmed breakout or breakdown with increased volume before making a move
Intermediate Advanced Questions
What technical indicators help confirm a squeeze
Look at Bollinger Bands squeezing together low Average True Range readings and declining volume These all signal consolidation before volatility expansion
What usually causes a price squeeze to end
A squeeze typically ends with a catalystlike major crypto market news a Bitcoin price move a Dogecoinrelated announcement or simply enough trading pressure building up to break the key support or resistance level
Whats the difference between a bullish and bearish breakout from a squeeze
A bullish breakout occurs when price breaks above resistance with strong volume often leading to a rally A bearish breakdown happens when price breaks below support with volume usually leading to a drop
How do traders manage risk during a squeeze
They often place trades with stoploss orders just outside the squeeze range Position sizing is also crucial since the impending move can be large
Can a false breakout happen after a squeeze
Yes Sometimes price will briefly break out then reverse back into the range Traders