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Key Takeaways:
- Dogecoin lost the $0.25 support, signaling bearish control.
- Liquidation data suggests potential for a short-term bounce to $0.23.
- A drop below $0.195 opens the door to $0.142 in the coming weeks.
Dogecoin (DOGE) is showing signs of weakness after failing to hold above the $0.25 support level, a key price point that bulls had hoped to defend. This move, coupled with bearish indicators and a drop in Bitcoin (BTC), points to a potential further decline toward the $0.142 range low—unless a short-term bounce is triggered by BTC strength.
Technical Indicators Turn Bearish
On the daily chart, DOGE is now targeting the $0.196 mid-range level, which also aligns with the 50-day Moving Average. While this zone may act as temporary support, the sharp rejection at $0.285 and the swift breakdown below $0.25 indicate waning bullish momentum.
The On-Balance Volume (OBV) has made a fresh weekly low, signaling falling demand. Simultaneously, the Relative Strength Index (RSI) has dropped below the neutral 50 mark, reinforcing bearish sentiment in the market. A sustained move below $0.195 would likely confirm a push toward $0.142.
Liquidation Heatmaps Hint at Short-Term Bounce
Despite bearish pressure, Coinglass’ 2-week liquidation heatmap reveals significant liquidity just below the $0.20 mark. On the upside, $0.227 and $0.25 serve as key resistance levels where short liquidations could magnetize price action if BTC rebounds.
The 3-day heatmap further supports the possibility of a relief rally toward $0.23, contingent on Bitcoin reclaiming the $116.7K range support.
Also Read: Dogecoin Drops to $0.20 but Holds Long-Term Uptrend Channel
Cautious Optimism for Long-Term Investors
For long-term DOGE holders, the recent failed breakout is a setback. However, if the price descends toward the $0.142 range low, it could offer a strategic re-entry opportunity. Until then, swing traders are advised to remain on the sidelines and wait for clearer confirmation of trend direction.
Dogecoin remains under heavy bearish pressure, with the failure at $0.25 highlighting weak market structure. However, a short-term bounce remains possible if Bitcoin regains strength. Traders should closely watch the $0.195–$0.196 support zone for clues on DOGE’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
