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DOGE is trading just above $0.17, a critical support area with downside risk to $0.12.
Technicals show bearish momentum, but altcoin sector strength could help recovery.
A rebound toward $0.20 - $0.24 is possible if $0.17 holds and sentiment improves.
Dogecoin (DOGE) has recently faced significant selling pressure, resulting in losses spanning daily to weekly timeframes. At the time of writing, Dogecoin is trading at $0.1702, representing a roughly 11% decline over the past week and a 0.2% drop in the last 24 hours.
After a prolonged downtrend and repeated failures to hold above key resistance levels, the coin now hovers near a major support zone that could determine its next directional move. With bearish momentum building and no fresh catalysts in sight, traders are closely watching the current range to see whether DOGE can stage a comeback or risk deeper losses.
The daily chart reveals a troubling pattern for Dogecoin. After failing to break above resistance near $0.246 (the 38.2% Fib level), prices have steadily declined, slipping under the 50%, 61.8%, and 78.6% retracement levels.
These levels, ranging from approximately $0.282 to $0.318, appear less relevant now that the price is trapped at the lower end.
More recently, DOGE has retested a demand zone between $0.17 and $0.168, highlighting the current “alarm zone.” All major exponential moving averages, the 20-day, 50-day, 100-day, and 200-day, are aligned overhead, creating a steep resistance wall above current levels.
The Relative Strength Index (RSI) hovers around 36, indicating neutral-to-slightly bearish momentum, not quite at oversold conditions but pointing downward.
In summary, DOGE sits just above a critical support zone. If it breaks beneath $0.17, prices may open the door to declines toward $0.14 or even $0.12 - $0.08, revisiting lows seen earlier in 2024.
Also Read: Dogecoin on the Edge: Crucial Chart Pattern Hints What’s Next
Dogecoin has struggled to gain traction in low-liquidity markets, a stark contrast to major altcoins like Ethereum and Solana. As these coins showed relative resilience during recent dips, DOGE underperformed significantly.
Several key factors are contributing:
Macro sentiment: Risk-off moves in equities and cryptocurrencies may have triggered profit-taking in meme assets, such as DOGE.
Altcoin rotation: Funds appear to be shifting from meme tokens into more fundamentally backed altcoins and Layer-1 ecosystems.
Lack of catalyst: Without specific news, such as celebrity endorsements or institutional usage, the meme-token appeal remains weak.
Despite Dogecoin’s weak position, some analysts note strength in other altcoins. Former Ark Invest analyst Chris Burniske commented that ETH and SOL have held up better than expected following major sell-offs, citing factors like optimistic sentiment and the resilience of altcoin ecosystems.
This resilience could eventually rub off on Dogecoin, particularly if the broader crypto market finds footing. Burniske noted: “ETH is showing more strength than acknowledged, and SOL is digesting major FTX unlocks without much issue.” While DOGE currently lags, a general rebound in altcoins could lift sentiment and prices across the sector.
Bullish: DOGE holds $0.17 and rebounds above $0.20, targeting $0.24 - $0.25 on renewed memecoin interest and capital rotation.
Base Case: DOGE ranges between $0.17 - $0.20, $0.20 - $0.22 acts as resistance unless volume or catalysts improve.
Bearish: A drop below $0.17 could lead to $0.14, with risk of further decline to $0.12 - $0.08 if market sentiment weakens.
Also Read: Dogecoin Makes a Big Move: Will the Next Impulse Push It Past $1?
Crypto analyst Eliz has warned that Dogecoin is currently "at risk of a deep drop" should the $0.17 level give way. Eliz says, A breach could drag DOGE down toward $0.12 or even $0.08 levels not seen since late 2024.
However, the outlook isn't entirely bleak. Eliz notes that if bulls manage to hold the $0.17 region and capitalize on improving altcoin sentiment, DOGE could mount a recovery. A short-term bounce could return DOGE to the $0.20 zone, with a potential to stretch toward $0.24 if volume improves and broader market sentiment turns.
Dogecoin is at a critical juncture. With prices testing a key support zone at $0.17 and technical indicators showing vulnerability, the next few sessions could shape DOGE’s medium-term outlook. A break below this level would likely open the door to deeper losses. However, if buyers defend the “alarm zone,” DOGE may stage a modest rebound toward $0.20 - $0.24.
As with all speculative assets, managing risk through position sizing and strict stop levels is essential. Keep a close eye on broader market trends, altcoin sector strength, and any new catalysts before entering DOGE positions in the current range.
