Dogecoin (CRYPTO: DOGE) is showing signs of selling pressure as it threatens to drop below a key support level that could put it one step away from a downtrend.

What Happened: Crypto analyst RLinda noted on the TradingView platform that Dogecoin is currently being sold off and is testing the panic zone.

"The last fib is 0.2135 (support), and we’re currently at 0.2145 (panic zone). A confirmed breakdown below this panic zone, especially if it pierces the 0.2135 support line, would not only liquidate long positions but also likely intensify selling pressure, leading to an uncontrolled price decline," RLinda stated.

The analyst explained that the coin’s distribution phase between May 9 and 11 ended in the $0.2600 range, marking the apex of its latest bullish impulse. During this phase, Dogecoin squandered all the potential it had accumulated in late April and early May.

From that point, the price has been falling steadily, entering what RLinda describes as the correction or dump phase. This has caused the meme coin to test the 0.214 level, the current panic zone.

Interestingly, this correction price action has been characterized by lower highs, leading to the formation of a triangle pattern that’s visible on the 2-hour timeframe. RLinda cautioned that if the triangle’s base is broken, this structural failure could reinforce bearish sentiment. This would open the door to downside targets closer to $0.20 and possibly even $0.19.

Dogecoin traders will also want to keep an eye on the immediate resistance levels of $0.222 and $0.2307. These points represent key zones Dogecoin must reclaim to negate the current bearish setup. A move above these points, especially if the price consolidates above $0.23, will invalidate the bearish breakdown structure and could renew bullish sentiment.

However, RLinda emphasized that such a scenario is only worth considering after a clear confirmation, as current momentum still favors sellers.

On the other hand, the support levels of $0.2145 and $0.2135 are the final shields holding back further declines. A close below $0.2135 would confirm the continuation of the downtrend and push the Dogecoin price into a lower consolidation zone, with limited immediate support until $0.20126 and $0.19298.

At the time of writing, Dogecoin is trading at $0.22, up 1.72% over the past 24 hours. This slight recovery hints at early signs of strength and may already be undermining the bearish setup.

While this slight recovery is not enough on its own to confirm a bullish reversal, it does show that buyers are attempting to regain some control. If this momentum can be sustained into the new week, it could gradually pave the way for a more sustained move higher for Dogecoin during the week.