Dogecoin Reclaims Momentum After December Dip as ETF Flows and Meme Sentiment Improve

Dogecoin (DOGE) has staged a strong recovery after its December losses, signaling renewed interest in the memecoin segment. After briefly slipping below the $0.13 level late last month, a price zone last tested during April’s pullback DOGE rebounded sharply, forming a V-shaped recovery.

The rebound pushed Dogecoin above $0.15 for the first time since early December before a modest retracement toward $0.146.

Over the past week, DOGE has gained 20.13%, outperforming many large-cap cryptocurrencies as the broader memecoin category surged 24%.

Technical Structure Shows Improving Conditions

Technically, the recovery of Dogecoin signals the weakening of the selling pressure. On-Balance Volume (OBV) and the Chaikin Money Flow (CMF) are both volume-oriented indicators that have shown that the distribution has slowed as compared with the end of December.

However, these indicators have not yet been able to change their stance to bullish totally, but are signaling that the demand is improving.

The Directional Movement Index (DMI), which previously indicated a strong downtrend, has become more relaxed, which means that the bear's strength is fading.

In the past, whenever Dogecoin was in a similar situation, it managed to get past key resistance levels, and that led to fast price increases.

DOGE is trading above the 50-day Exponential Moving Average (EMA) and is all set to face the resistance at $0.166 near the 100-day EMA. If it successfully breaks through, the token would then be able to target the next resistance level of $0.181 near the 200-day EMA.

On the downside, the $0.142 level is the support. If the price slides under $0.142 and subsequently under the 20-day EMA, it could fall deeper to $0.121.

The Relative Strength Index (RSI) is positioned above the neutral zone, while the Stochastic Oscillator (Stoch) is signaling overbought conditions, hence suggesting a strong bullish momentum.

Key Levels to Watch

A significant breakout above the $0.156 level, then a successful retest would reinforce the bullish argument and indicate that the buyers are in control.

Conversely, a decline to $0.135 and $0.140 region would be a more secure entry point for those traders who are positioning themselves for a continued move upward.

On the upside, the targets for the near term are around $0.185 and $0.21. The area at $0.275-$0.29 is strong resistance, where the sellers will likely re-emerge, though the price must break through $0.21.

A prolonged decline below the $0.124 level would negate the bullish outlook and point towards a broader consolidation.

Also Read: Dogecoin (DOGE) May Hit a New Low in Early 2026: Here’s Why

ETF Flows and Market Sentiment Add Fuel

At the same time, leveraged meme-focused products such as a 2x Dogecoin ETF have emerged among the top-performing ETFs in early 2026, which indicates increasing interest in high-beta trading.

The increase coincides with a general shift to memecoins, sometimes considered as a measure of speculative risk appetite. Even though such movements are not backed by the fundamentals, they usually help to strengthen the prevailing trend.