Dogecoin is trading at key demand levels after two weeks of massive selling pressure, with bears pushing DOGE down more than 30%. The meme coin sector has been hit the hardest during this market-wide correction, which began in mid-January, and as the market leader, Dogecoin has suffered the most.
Investors have started to question the sustainability of the meme coin rally, especially as sentiment continues to weaken across the board. Glassnode metrics confirm this downward trend, revealing that Dogecoin’s open interest has dropped by 67% over the past three months.
With DOGE now at a critical level, traders are watching whether bulls can step in to hold support and push prices higher. If buying pressure returns, Dogecoin could start a strong recovery rally, but if the trend continues, further liquidations and losses could follow. The next few days will be crucial as investors assess whether DOGE can recover or extend its decline in this volatile market.
Dogecoin Faces Selling Pressure
After this week’s market breakdown, Dogecoin has struggled to reclaim key price levels and still faces a serious risk of further declines. The meme coin sector has been one of the hardest-hit areas in the crypto space, with analysts blaming speculative meme coin trading as a key factor behind the broader crypto correction. As sentiment weakens, DOGE and other meme coins continue to lose ground, unable to recover from massive sell-offs.
Top analyst Ali Martinez shared Glassnode data on X revealing that Dogecoin’s open interest has declined by 67% over the past three months. Open interest fell from an all-time high of $4.07 billion to just $1.33 billion today, highlighting that traders have lost interest in DOGE and that speculation has dried up. This data confirms the negative environment surrounding meme coins, and as the market leader, Dogecoin is setting the tone for the entire meme sector, which continues to struggle.
For DOGE to regain momentum, bulls must step in and defend key demand levels. A break below current support could lead to even more selling pressure, while a reclaim of higher resistance levels could signal a potential recovery rally. With open interest and volume declining, Dogecoin remains in a critical position, and the next few weeks will determine whether bulls can take back control or if the downtrend will continue.
DOGE
Dogecoin (DOGE) is currently trading at $0.21 after weeks of underwhelming price action. Bears remain in control, and momentum continues to push the price into lower levels, making it difficult for bulls to reclaim strength. DOGE has been in a steady downtrend, struggling to gain traction as meme coins face increasing selling pressure across the market.
If bulls want to regain control, DOGE must push above the $0.24 level and hold it as support. Reclaiming this level would signal short-term strength and could trigger a relief rally toward higher resistance zones. However, with market sentiment still bearish, a breakout seems unlikely unless overall conditions improve.
On the downside, if DOGE fails to hold current levels, a drop toward $0.15 could be expected. This level represents a significant psychological and technical support, but losing it would put DOGE in uncharted territory for this cycle. With open interest declining and liquidity drying up, bulls need to step in soon, or the downtrend could accelerate.
The next few days will be crucial as DOGE attempts to stabilize or continues to bleed out. If market conditions remain weak, further downside pressure could push DOGE into even lower demand zones.
Sebastian Villafuerte
Sebastian’s journey into the world of crypto began four years ago, driven by a fascination with the potential of blockchain technology to revolutionize financial systems. His initial exploration focused on understanding the intricacies of various crypto projects, particularly those focused on building innovative financial solutions. Through countless hours of research and learning, Sebastian developed a deep understanding of the underlying technologies, market dynamics, and potential applications of cryptocurrencies.
To share his insights with others, Sebastian became an active contributor to online discussions on platforms like X and LinkedIn. His focus on fintech and crypto-related topics quickly established him as a trusted voice in the online crypto community. Sebastian’s goal was to educate and inform his audience about the latest trends and insights in the rapidly evolving crypto landscape.
To further enhance his expertise, Sebastian pursued a UC Berkeley Fintech: Frameworks, Applications, and Strategies certification. This rigorous program equipped him with valuable skills and knowledge regarding Financial Technology, bridging the gap between traditional finance and decentralized finance. The certification deepened his understanding of the broader financial landscape and its intersection with blockchain technology.
Sebastian’s passion for finance and writing is evident in his work. He enjoys delving into financial research, analyzing market trends, and exploring the latest developments in the crypto space. In his spare time, Sebastian can often be found immersed in charts, studying 10-K reports, or engaging in thought-provoking discussions about the future of finance.
Sebastian’s journey as a crypto pioneer has been marked by a relentless pursuit of knowledge and a dedication to sharing his insights. His ability to navigate the complex world of crypto, combined with his passion for financial research and communication, makes him a valuable contributor to the industry. As the crypto landscape continues to evolve, Sebastian remains at the forefront, providing valuable insights and helping to shape the future of this revolutionary technology.
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