Dogecoin (DOGE) has come under intense selling pressure, shedding more than 30% in value over the past two weeks. As of now, DOGE is trading at $0.21, struggling to maintain key support levels amid broader market weakness. Meme coins, including Dogecoin, have faced some of the steepest declines in recent weeks, reflecting investor caution as the crypto market undergoes a correction.
According to Glassnode’s on-chain metrics, long-term Dogecoin holders are in “denial”, signaling growing uncertainty among investors who have held DOGE for extended periods. The DOGE Long-Term Holder Net Unrealized Profit/Loss (NUPL) indicator has been on a steady decline, suggesting that many early investors are either seeing diminishing unrealized profits or slipping into losses. If market conditions fail to improve, this cohort may be forced to sell, adding further downward pressure on the price.
Dogecoin’s Critical Support Levels—What’s Next?
The recent decline has seen DOGE drop from its December high of $0.48 to a recent low of $0.19, marking a 59% decline. Crypto analysts are divided on whether this signals the beginning of a prolonged bear market or an opportunity for a price reversal.
While technical indicators suggest bearish momentum, some on-chain data points to a potential recovery if bulls manage to reclaim lost ground. Ali Martinez, a well-known crypto analyst, highlighted that DOGE’s NUPL indicator suggests that long-term holders are hesitant to sell, despite market uncertainty. Historically, such “denial phases” have led to two possible outcomes—either a final capitulation event or a strong recovery if bulls regain control.
Can Dogecoin Recover from This Downtrend?
Currently trading at $0.21, Dogecoin has dropped 19% since Monday, facing stiff resistance at $0.24—a level that bulls must reclaim to signal the start of an uptrend. If DOGE fails to hold above $0.21, sellers could push prices lower, potentially testing previous support levels.
For a recovery rally to gain momentum, Dogecoin needs to stabilize and break above $0.24. However, if selling pressure continues, DOGE could enter a prolonged consolidation phase or even decline further. Bitcoin’s price action will also play a crucial role in determining whether DOGE can recover or sink further.
Traders should watch for key signals, including whether bulls can defend the current demand zones and reclaim critical resistance levels. If Dogecoin manages to sustain buying interest, a potential rally toward $0.30 or higher could be on the horizon.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your research before making any investment decisions.
