DOGE Short Setup in Play—Targeting $0.13258 and $0.08840

The broader price structure of DOGEUSDT continues to reflect a clear downtrend, with price consistently printing lower highs and lower lows. This trend is well-respected, as shown by the descending blue trendline, which has acted as dynamic resistance since early 2025.
In late April to early May, DOGE saw a sharp rally, briefly breaking above the trendline. However, this move turned out to be a false breakout against the trend, highlighted on the chart with a label and visual marker. The breakout failed to sustain above resistance and quickly reversed, trapping bullish traders and reaffirming the bearish dominance. This type of price action often signals a bull trap, and in this case, the reversal was swift and aggressive.
The price has since declined and is currently trading around the $0.18258 region, hovering just below the local resistance and just above the initial support levels.

Key Levels Observed on the Chart
• Stop-Loss / Resistance Zone:
The red resistance area around $0.20930–$0.22643 marks a critical stop-loss zone for any short positions. This is the top boundary where the false breakout failed and where sellers previously regained control.
• Entry / Decision Zone:
Price is currently within a small neutral box (shown in light blue), indicating a potential short entry zone as price consolidates below resistance.
• Key Support Level 1 / Take Profit 1:
$0.13258 – This level has been labeled as the first major support and serves as the initial take-profit zone for short setups. Historically, this zone has held price during strong down moves, and it aligns well with past structure.
• Key Support Level 2 / Take Profit 2:
$0.08840 – The second support level is marked as a deeper profit target for continuation of the downtrend. This level is closer to multi-month lows and reflects potential bearish extension.
• Final Support Base:
$0.05000 – This level is the lowest green horizontal line on the chart, showing long-term structural support. If macro conditions worsen, this remains a plausible downside target.

Detrended Price Oscillator (DPO) Indicator
The DPO reading remains below zero at approximately –0.04, reinforcing the bearish momentum. The indicator does not show any bullish divergence, suggesting that there’s currently no sign of an upward reversal forming. The gradual downward slope of the DPO supports the probability of a continuation move to the downside.

Trade Setup (Short Bias)
• Entry Zone: $0.18258 – $0.18546 (current price range just under resistance)
• Stop-Loss: $0.20930 (above key resistance where breakout failed)
• Take Profit 1: $0.13258
• Take Profit 2: $0.08840
• Extended Bearish Target: $0.05000

Conclusion
DOGEUSDT continues to respect its long-term bearish structure, and the recent false breakout further validates the dominance of sellers. The failed attempt to reverse the trend above $0.20930 provides a well-defined stop for short setups, while the clean stair-step structure of support levels offers logical take-profit zones.
Unless DOGE manages to close above the $0.20930–$0.22643 resistance band with strong follow-through, the current bias remains bearish. Traders can monitor for short opportunities while protecting capital above the invalidation zone.