DOGE Faces Bearish Reversal Risk as Hanging Man Pattern Forms on Monthly Chart

2026-01-31 12:24:01

⬤ Dogecoin just printed a Hanging Man candlestick on the monthly chart—a classic bearish warning that shows up when an uptrend starts losing steam. The pattern features a small body with a long lower shadow, and it’s sitting right where bulls have failed before. This technical signal suggests buyers are running out of firepower after the recent climb.

⬤ What makes this pattern even more concerning is where it’s showing up. DOGE is once again testing the upper boundary of a multi-year descending channel that’s acted like a brick wall for years. Every time price has approached this resistance line, it’s gotten rejected and reversed lower. The current setup looks eerily familiar to those previous failed breakout attempts.

⬤ Historical price action tells a pretty clear story here. Those rounded consolidation zones near resistance? They’ve consistently ended in sharp drops once momentum faded. The chart pattern suggests a similar scenario could play out again if the next monthly candle confirms this bearish signal. While exact targets aren’t specified, the risk clearly tilts toward downside rather than continuation.

⬤ This matters beyond just DOGE itself. The meme coin has historically acted as a canary in the coal mine during major crypto market shifts. If this monthly reversal gets confirmed, it could signal broader weakness across speculative assets and suggest the hype-driven rally is losing gas. The pattern needs confirmation, but right now DOGE is flashing warning signs at a technically critical level.

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