Dogecoin (DOGE) Price Drop: Key Resistance and Recovery Signals Traders Should Watch

Sean Williams
Dogecoin (DOGE)

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  • DOGE fell sharply from $0.30 to $0.19, triggering market panic.
  • Technical charts show potential bullish reversal if resistance breaks.
  • DeFi adoption and growing TVL indicate long-term confidence in DOGE.

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Dogecoin (DOGE) sparked panic in crypto markets after a sudden plunge from $0.30 to $0.19, leaving traders cautious and wary. While attempts at a rebound are underway, analysts stress that recovery may be slow as the meme coin battles key resistance levels.

Bullish Momentum Fizzles Out

Earlier this week, bullish sentiment pushed DOGE past $0.25, with strong 4-hour candlestick gains reflecting investor enthusiasm. The coin even peaked at $0.26917. However, the rally quickly lost steam, and DOGE plunged to $0.19, breaching previous support zones. Analysts highlight the long wick during the fall as a classic flash crash indicator — a sign of panic selling.

Even as the price attempted to bounce back, DOGE struggled to maintain upward momentum. Repeated tests of the $0.25 zone encountered stiff resistance, leaving the market in a state of indecision. Lower highs on recent charts indicate a bearish undertone, reinforcing caution for short-term traders.

Technical Indicators Offer Cautious Optimism

Despite recent setbacks, technical analysts see potential for DOGE to stabilize. Chart expert EtherNasyonaL notes that DOGE remains above its 25-month moving average, with the Relative Strength Index (RSI) holding above 50. The monthly chart suggests a breakout from a falling wedge pattern, historically linked to past bullish rallies in 2020–2021.

If the pattern holds, DOGE could target previous highs between $0.70 and $1.00. Yet, experts stress that any significant breakout requires sustained trading volume and a clear move above the wedge to confirm a trend reversal.

DeFi Growth Adds Long-Term Perspective

Beyond price action, DOGE’s growing presence in decentralized finance (DeFi) provides a positive signal. Data from DeFiLlama shows Total Value Locked (TVL) in DOGE-based protocols exceeding $30 million — up from under $5 million in 2022–2023. Growth is likely driven by wrapped DOGE (wDOGE), cross-chain integrations, and layer-2 solutions.

Also Read: CleanCore Dogecoin Treasury Surpasses $20M in Unrealized Gains, Nears 1 Billion DOGE

Consistent higher lows in TVL suggest investor confidence in DOGE’s utility, indicating that the coin’s ecosystem may be maturing beyond its meme status.

Dogecoin’s rollercoaster price cycle highlights volatility, with sharp drops followed by cautious rebounds. While short-term outlooks remain uncertain, long-term technical patterns and DeFi adoption suggest DOGE could regain momentum. Traders will closely watch key resistance levels to see if the meme coin can reclaim its bullish trajectory.

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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.

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