Dogecoin (CRYPTO: DOGE) is down about 3% over the past week, with traders watching whether the meme coin can hold a key support level near $0.10.

Deeper Correction Ahead?

Crypto chart analyst Ali Martinez said Dogecoin may be setting up for a deeper correction after trading inside a parallel channel for the past three months.

The latest rejection from the channel's upper boundary pushed DOGE back toward the midrange, which also lines up with its 50-day SMA. Martinez said this is now the most important support zone for the token.

A break below that level could open the door for a move toward the channel's lower boundary near $0.088.

Another trader, CryptosBatman, said Dogecoin has been cooling off inside a descending channel while holding near $0.10. He added that DOGE remains trapped below its 200-day EMA, but tight compression near the top of the channel could set up a sharp breakout if momentum returns.

Whales Build Long Positions

Lookonchain data showed large traders are still positioning for upside.

One whale opened a long position with 27.38 million DOGE, worth about $2.75 million, and placed additional buy orders for 33.46 million DOGE, worth around $3.31 million.

Another address opened a long position with 10.21 million DOGE, worth about $1.03 million, with open buy orders for another 14.66 million DOGE, worth roughly $1.45 million.

The whale activity suggests some large traders are betting on a rebound, even as DOGE tests a key technical support zone.

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